Harrisonburg City Assessments Compared To Home Sales Prices

By Scott Rogers • February 16, 2010

The new 2010 real estate assessments are out and I thought it might be of interest to compare these new assessed values to the prices for which properties are actually selling.

Below are the 12 properties in the City of Harrisonburg shown as sold in the HRAR MLS between January 1, 2010 and February 14, 2010.

Address	Sales Price	Assessment	Sales Price / Assessment
1195 S. Dogwood Dr	$325,000	$324,800	100.1%
2121 Scarlet Oak Ct	$246,000	$233,400	105.4%
475 Hartman Dr	$151,000	$176,300	85.6%
509 Pointe Dr	$150,000	$172,900	86.7%
1406 Founders Way	$149,000	$184,700	80.7%
470 W Wolfe St	$204,500	$202,100	101.2%
333 West Ave	$230,500	$235,500	97.9%
460 Ohio Ave	$230,000	$233,500	98.5%
1329 C South Main St	$109,000	$123,500	88.2%
755 Northfield Ct	$107,500	$155,100	69.3%
151 Logan Ln	$77,500	$90,200	85.9%
2560 Ramblewood Rd	$185,000	$224,400	82.4%

As you can see, some properties sold above AND some sold below assessed value. On average, these 12 properties sold for 90% of assessment, and the median ratio was 87%. If we assume that assessed values are a VERY GOOD INDICATOR of market value, this analysis could mean that:

City assessments could be "too high" --- of course this is hard to really gauge, since the assessments aren't based on today's values, but rather on values from the past year (or so) leading up to the re-assessment.
Or....the only properties that are actually selling right now (or most of the properties that are actually selling right now) might be the properties that are priced very aggressively (low), or properties where owners end up negotiating down quite a bit.

Several questions that rise out of this analysis would then include:

Should SELLERS only expect 87% to 90% of their assessed value in a sales price?
Should BUYERS only expect to pay 87% to 90% of an assessed value as a sales price?

The answer to both questions is "not necessarily" --- I don't believe that assessed values are necessarily within a very small margin of market value --- I think that there is some variation. Thus, the variation in the ratio of sales price to assessed value is normal, and will always exist.

If I didn't walk in too many circles there, tell me what you think!

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Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com

Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).

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