Brookfield homes are selling for less than assessed value
Back in the day, Buyers who based an offer on assessed value had the credibility of the local weather forecaster. Their chances of hitting the mark were slim.
This was particularly true for Brookfield properties. Generally, assessments were 10 to 20 percent below market values. However, as market conditions have changed I thought it might be interesting to see if an argument could be made for connecting purchase prices and assessed values.
I compared the sale price to the assessed value for all homes sold in Brookfield in July 2006 and July 2009. I used 2006 as a benchmark because Brookfield did a citywide reassessment then and the assessor certainly did an exceptional job.
Sales prices for the month of July 2006 on average were 102 percent of assessed value. There were 43 sales for the month and 27 sold for more than the assessed value. Sale prices ranged from 88 percent of assessed value to 119 percent.
For July 2009 the number of sales was surprisingly higher, while the average price to assess value difference was considerably lower. There were 52 sales in 2009, yet only 15 were at or above assessed value. The average difference between sale price and assessed value was 91 percent. The differential ranged from 79 percent to 114 percent.
One point of interest is the impact on houses assessed for more than $500,000. In July 2009 there were seven such homes sold and only one of those sold for more than the assessed value. The differential represented the extremes for the year, 79% and 114%.
In July 2006, there were nine sales in this category and only three sold for less than assessed value. The range between sale and assessed value was tight…99% to 103%.
I’m not prepared to say your Brookfield home assessed for $400,000 would have sold for $408,000 in 2006 and is now worth $364,000. However, I am now more inclined to work with a buyer who bases an offering price tied to assessed value than, say, carry an umbrella the next time I hear rain in the forecast.
Hope this chart helps.
Posted by:
Steve Bauman
