Sellers take head....a refuge in the falling price problem might just be the Tax Man's assessment!
Here in Richmond, VA, my research has discovered enough closed sales volume to point towards a...dare I say...trend? If the data is indeed whispering an answer to the "When will the price fall finally hit bottom?" question, the tax assessed value seems to be it. And those closed sales didn't begin at that price, as on quite a few occassions, there was a significant gap between the list and the closed prices. Nevertheless, the closed prices remained grouped around the...assessed value Sure, i've found some variations, usually at the higher price points, of +/- a few percentage points, but as you might expect, that variable still 'grouped out" when you mapped the sales. Of course, the missing kitchen renovation, or horrible condition might not be reflected in the assessed value, but these discrepancies were easy to explain and document.
Bottom line from my perspective, seems to be that buyers are, perhaps unconsciously so, looking for a fixed data point on the "value" of a property. One that comes from a third party, "trusted" resource, like The Government. Once they sense a firmness around that perception of 'worth' or 'value', they closed transactions. I cannot say how intense or ongoing was the negotiation process, either. But think what the perception of market stability would be, if listed properties began selling w/relative speed, and for at or near asking price??? Why the buyer might actually perceive the benefit of quick action to be a 'deal'!
Maybe some of you will take a look and let us all know if similar 'trending' is in play in your market?
Good luck!
Michael Scott
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