What percent of all Madison homes sell for under the assessed value?

We last covered this topic with data from 2007. The data from 2008 shows a greater percentage of Madison homes are selling for below the assessed value compared to every other year this decade.

The bar chart below shows how the relationship between assessed value and market value has changed over time. The blue bar represents the percent of Madison homes that sold for below the assessed value. The purple bar represents the percent of Madison homes that sold for above the assessed value.

Roughly 1 out of every 10 Madison homes sold for below the assessed value during the years 2000 to 2005. This relationship started to change in 2006, when 3 in 10 sold for below the assessed value. The number jumped to 4 in 10 in 2007, and almost 5 in 10 in 2008.

We drilled deeper into the 2008 data for Madison homes and uncovered the following:

• 29% of all homes sold for a price that was at least $10,000 lower than the assessed value.
• 40% of all homes sold for a price that was within $10,000 (above or below) the assessed value.
• 31% of all homes sold for a price that was at least $10,000 above the assessed value.

What does this data mean to you?

• If you're selling, you can't rely on the assessed value as a reliable measure of market value.
• If you're buying, realize a list price above the assessed value doesn't mean a home is over-priced. And a list price below the assessed value doesn't mean a home is priced at a good value.

For more information, read our articles on market value versus assessed value and pricing your home, both on the selling real estate page at DaneCountyMarket.com.