What IS the relationship between Assessed Value and Real Estate Sales in the Vilas County Area?
This is a common question I am getting more and more from Buyers as they continue to look for great values in todays market. I decided to do a study on the townships surrounding Eagle River to see exactly how each township differs in their sales prices and their Assessed and Fair Market Values.
I chose the townships surrounding Eagle River, WI in Vilas County because they are so close yet the tax values differ greatly. What I have been finding is that many of our buyers are hung up on fair market value and assessed value when they go to make an offer. For some townships that is a good thing and for others not so much. So, I took the sales in the surrounding area since Oct 1,2009 and did a small study and this is what I found :
- In the town of Cloverland the trend has been that recent home sales have fallen right between Fair Market Value and Assessed Value. Average sales price was $272,000 while the average FMV was $303,446 and the average AV ( Assessed Value ) was $251,700. Cloverland appears to be the township with the largest discrepancy between those 2 values...
- In the town of Lincoln the trend has been that recent home sales have fallen right under BOTH Fair Market Value and Assessed Value. Average sales price was $213,818 while the average FMV was $232,648 and the average AV ( Assessed Value ) was $229,336 This makes the average list to sell ratio in Lincoln about 91-93 percent. When I studied the waterfront only in Lincoln that average was a bit higher. So, all in all Lincoln has held closer to it assessed values than the other surrounding areas...
- In the town of Washington the trend has been that recent home sales have fallen quite a bit under BOTH Fair Market Value and Assessed Value. Average sales price was $223,066 while the average FMV was $287,455 and the average AV ( Assessed Value ) was $280,511. This makes the average list to sell ratio in Washington just under 80%. When I studied both waterfront and non-waterfront separately in Washington the waterfront parcels have actually faired better despite a couple of recent sales that have really brought those averages down.
- In the City of Eagle River the trend has been similar to that of the Town of Washington. Sale prices have fallen under BOTH Fair Market Value and Assessed Value. Average sales price was $72,293 while the average FMV was $92,749 and the average AV ( Assessed Value ) was $84,371. This makes the average list to sell ratio in the city about 78% of FMV and 86% of AV.
What does this mean??? Overall, it means we need to keep an eye out on these values when we price and when we negotiate and when we write offers. It gives us an insight into what is happening as a trend and to why Buyers may be feeling some prices are high for what they are assessed at. It also shows the discrepancy between each township and how they assess...It is also good to know how each township's value is doing in regards to this selling market. Again - there are exceptions to every rule AND while I did try to weed out most foreclosure there may be a couple in there as well as some short sales.
Another key thing to remember is that these values may have been placed on them by someone who actually has never been in the property. So, if you have a buyer or are a buyer questioning pricing based on an Assessed Value or a Fair Market Value in Vilas County - Eagle River, WI perhaps this can be a guide to where a purchase price may fall.
Copyright©by Julie Paez, All Rights Reserved, Assessed Value and Real Estate Sales in Vilas County, WI
Thank you so much for your time and your business. and for LISTENING!
Happy House Hunting!!!
Julie Winter-Paez Broker/Owner, CRS, GRI
ReMax Property Pro's, LLC
602 Michigan St. PO Box 1058
Eagle River WI 54521