Many people are tempted to price their listing based on the value that their local tax assessor assigns to their home. This is a logical assumption to make. After all, the city assigns the assessed value based on the recent real estate transactions in the area.
The reality is the assessed value very often has no bearing whatsoever on the true market value for a home. Here are three real examples for three Madison condos for sale, all of them located within the same association.
Assessed value versus market value: three condos
- Condo 1: assessed value = $355,000, list price = $335,000
- Condo 2: assessed value = $385,500, list price = $335,000
- Condo 3: assessed value = $363,100, list price = $325,000
All three of these condos are under contract with an accepted offer, and all three of them will be selling for a price that is close to the list price set by the seller. If these owners would have priced their listing based on the assessed value, they would have severely overpriced their condo, which would have resulted in an extended amount of time on the market, and eventual price reduction(s).
The best way to price your home
If you're getting ready to sell, one of the best steps you can take early on in the process is to ask Mad City Dream Homes for a complimentary market analysis. Our market analysis will give you an accurate read on what real buyers are willing to pay for your home in today's market.
Along with our market analysis, we'll share our tips for addressing the simple repairs and updates that will increase your home's value further. And if you wish, we'll connect you with our trusted contractors who will do excellent work for you -- and for a fair price.
Call us when you're ready for a helpful planning session. It would be our pleasure to assist you.