• 161 days on market – this is 5 days less more in February 2009
• Sellers received, on average, 89.36% of their list price when the home sold
• There is 15.4 months of inventory on the market
• 11 homes sold in February 2010 – this is 1 less than in February 2009
• The most popular price range was $150,000-$199,999 and $250,000-$299,999.   
• The median sold price was $213,900, compared to $208,950 in February 2009
• Financing Terms:  Conventional – 3, FHA – 3, VA – 1, Cash – 4

Orange County

• 203 days on market – this is 8 days more than in February 2009
• Sellers received, on average, 78.80% of their list price when the home sold
• There is 24.3 months of inventory on the market
• 15 homes sold in February 2010 – this is 8 less than February 2009
• The most popular price ranges were $120,000-$139,999 and $300,000-$399,999.
• The median sold price was $180,000, compared to $177,500 in February 2009 
• Financing Terms:  Conventional – 2, FHA – 3, VA – 1, Assumption – 1, Cash – 5, Other – 3

Spotsylvania County

• 66 days on market – this is 52 less than February 2009
• Sellers received, on average, 93.07% of their list price when the home sold
• There is 8.2 months inventory on the market
• 103 homes sold in February 2010 – this is 2 less than in February 2009 
• The most popular price range was $160,000-$179,999
• The median sold price was $175,000, compared to $184,500 in February 2009 
• Financing Terms:  Conventional – 26, FHA – 38, VA – 19, Cash – 15, Assumption – 5

Stafford County

• 62 days on market – this is 58 less than February 2009
• Sellers received, on average, 91.19% of their list price when the home sold
• There is 8.1 months inventory on the market
• 95 homes sold in February 2010 - this is 31 less than in February 2009 
• The most popular price range was $300,000-$399,999
• The median sold price was $235,000, compared to $220,000 in February 2009 
• Financing Terms:  Conventional – 23, FHA – 15, VA – 34, Cash – 18, Assumption – 4, Other – 1

Prince William County

• 44 days on market – this is 49 less than February 2009 
• Sellers received, on average, 96.70% of their list price when the home sold
• There is 6.49 months inventory on the market
• 423 homes sold in February 2010 - this is 292 less than in February 2009
• The most popular price range was $300,000-$399,999
• The median sold price was $215,000, compared to $169,500 in February 2009
• Financing Terms:  Conventional – 126, FHA – 150, VA – 63, Assumption – 7, Cash – 76, Other – 1

All data provided by MRIS.

Assessed value is defined as the dollar value of an asset assigned by a public tax assessor for the purposes of taxation.  For our purposes, and the purposes of this blog, we will only be addressing home assessments.  According to The Code of Virginia (Title 58.1-3201) the assessed value of each home should be 100% of the estimated market value.  The locality in which the home is located hires an appraisal firm to come in and place actual values on parcels of land and their improvements.  It would take forever to assess each individual home, so the appraiser selects of homes in different areas and applies the findings to a mass of similar homes.  This system can account for assessed values that are not 100% of market value.  If the appraiser is not aware of certain nuances that effect price in the subject area the value placed on your home may not be very accurate.  If the appraiser happens to select the smallest home in your area or neighborhood as their representative sample, then the assessed value could come in low.  If they choose the largest home, the value could come in high.  Tax records also has a baring on the accuracy of tax assessments.  If you have finished your basement, but never got a permit, or the locality has never reflected the improvement in their records, then the assessed value will be off.  Appraisals, nor assessments, are an exact science.  Human error and subjectivity are major factors in determining your home’s assessed value.  If you happen to have just purchased your home and you notice that your assessment is lower than your purchase price, I wouldn’t complain.  It doesn’t mean you are losing value.  It just means that your taxes will be lower than if they had actually assessed at 100% of market value.  However, if you just purchased your home and your assessment is high, you may want to appeal your assessment.  A valid appraisal and additional comparables will be needed as evidence in your assessment hearing. 

What is market value?  Market value is defined as the price at which buyers and sellers trade an item in an open market place.  In real estate it is the contract price for a particular piece of property.  However, because most buyers need a loan from a bank to make a home purchase, the banks want to make sure the purchase is a sound investment.  Therefore, the bank will require an appraisal to ensure that the purchase price is justifiable.  The appraiser will use data from other homes in the area that have sold to calculate what the home is worth.  The fact that the home is on the open market and that a buyer desires the home help determine what a home is worth.  Without these factors, market value cannot be established.  I can list my personal home today for $500,000.  That doesn’t mean it is worth $500,000.  It is worth nothing until a buyer writes an offer for what they are willing to pay for me to sell them my home.  In our current market, buyers want lower market values.  The lower the market value, the more affordable the homes.  Sellers and economists, on the other hand, are anxiously awaiting market values to climb.  We are in year 3 of a down market.  (Some would argue that this is actually year 4). 

The value to take away from this post is that most home owners want to see low assessed values and high market values.  Looking at the most recent sales in your neighborhood or community can help you determine the accuracy of your assessment.