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Old 10-08-2010, 10:02 AM
 
78 posts, read 301,794 times
Reputation: 65

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Hi all,

I'm looking at moving to the Madison area next year. One thing I noticed that's different from where I currently live (NH), is that the town/city assessor comes to visit your house within 3 months of purchase. In NH, they use both market value and cost of construction for the assessment, and generally go with the higher value. From what I gather in WI, it's only based on market value?

I'm considering a wide range of properties - including fixer-uppers and short sales/foreclosures. These types of properties have assessments way over market value.

For example, there's a McMansion in Sun Prairie, assessed for $739,500, property taxes of $16,392/yr , but currently on the market for $425,000. Seeing that there is over a years worth of inventory in this price range, I could likely buy something like this pretty cheap. However, I would only purchase it if I had a reasonable expectation that the assessment would be lowered significantly.

Does anyone have experience in a similar instance?
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Old 10-08-2010, 03:57 PM
 
Location: Madison, WI
1,741 posts, read 5,395,974 times
Reputation: 821
I'm not sure, but I think this is the case. I know my assessment went way down after there were a couple of foreclosures on my block.
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Old 10-08-2010, 04:30 PM
 
113 posts, read 309,093 times
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It is typically based on market value, but if you recently bought, it will be very near the purchase price of the home with adjustments to be made in future years. We just bought a house and the assessment reverts to the purchase price.
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Old 10-11-2010, 08:45 AM
 
Location: Downtown Middleton
95 posts, read 291,036 times
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Always best to contact the city assessor. I live in Middleton and about the only time an assessment changes is when there is something across the board or if the home sells. Our assessments have very little to do with home value.
Madison has a pretty good track record of keeping up with the market.
City assessors phone numbers on on the city web-sites and most are happy to talk to you. Just make sure to make the call before putting in any offers, as you might find out after that the community your working in as just changed it's policy regarding reassessments.
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Old 10-14-2010, 11:32 AM
 
3,320 posts, read 5,593,504 times
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You have the right to contest an assessment any time you wish.
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