Home sellers question differences between assessment on tax bill and market price of their real estate
Home sellers are often frustrated when they see their property tax bill and read that their home is assessed at a higher amount than what the listing price of the house is. The example given yesterday in the Milwaukee Journal was of a couple whose home is assessed at $391,000. The current asking price after being lowered twice is $349,900 and they still have not received any legitimate offers in the 8 months it has been on the market. This is happening all over Southeastern Wisconsin and sellers question why. The answer is that the assessments are out of whack with the current home values.
The assessed value appearing on a current tax bill is based on the assessed value as of Jan. 1, 2006, which may have been the end of the 2000-2005 housing price run-up. Therefore, the tax bill assumes the house is worth thousands more than any buyer has been willing to pay.