Market Conditions in Dubuque>Question Details

Ratandrea, Both Buyer and Seller in Newalla, OK

Why is there such a HUGE discrepancy on some assessed values vs. list values and also some of the buying/selling prices?

Asked by Ratandrea, Newalla, OK Thu Jan 13, 2011

For instance, on 584 W. 11th in 2003 it sold for $94K. In 2006 it sold for $360K. Now the bank owns it and is asking just under $200K. For the last 3 years it's been assessed @ $340K even though no other property has sold for or is selling for anywhere near that. Why all of the discrepancies? The number of sales in Dubuque is down over 66% as well. Maybe people are scared to buy with all of the huge gaps everywhere! I know I am!!

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Rob Cook CRS & GRI’s answer
Just as a quick FYI Reandrea, 584 West 11th in Dubuque reduced to $169,950 today. Again, given that it's a bank-owned property it does pose a different kind of buying proposition compared to standard existing home sales, there may be a pretty good opportunity to get a good deal on a home that sold for roughly $200,000 more only 3 1/2 years ago. If you're interested please contact me...

Rob Cook - CRS & GRI Certified
Iowa & Illinois Licensed Realtor

Mobile: (563) 542-7278
E-mail: rob@riverbankstocornfields.com
Web: http://www.riverbankstocornfields.com/

Ruhl & Ruhl Realtors
4840 Asbury Road
Dubuque, IA 52002
0 votes Thank Flag Link Thu Feb 3, 2011
Hi Ratandrea, there are two major factors that have had an effect upon the up and down nature in pricing of 584 West 11th in Dubuque - the home's particular status when being sold and the changes in the market.

Back in August 2003 it was sold, appearantly as a home in need of a major rehab, for the $94K. The folks who bought it spent the next couple of years restoring the home to it's proper glory and put it back on the market in October of 2005. I'm not 100% sure if they actually lived there, but I do remember touring the home as it was finishing the rehab and it was quite impressive - the views of the city from the roof-top deck were awesome - original listing price was $370,000. They got the sale done nearly a year later in September '06, selling for $360,000. For whatever reasoning (perhaps seeing the foreclosure in the works), that buyer listed the home for sale at $299,000 in October 2009 and the listingmexpired off the MLS in April last year. Then the home immediately went into foreclosure proceedings, selling at sheriff's auction back the the mortgager for $205,083 on April 26th.

Now it's back for sale, currently listed for $186,950 as a bank-owned property. As with most bank-owned sales, there is typically a good-sized "discount" compared to regular market pricing. It's up to you as a potential buyer if you'd be interested in this type of property as most bank-owned sales come "as is" and usually involve a property that may be in some amount of disrepair. I can't say today that that necessarily is the status of this particular home, but it's something to keep in mind when thinking of taking advantage of the discounted price these homes offer.

As for changes in the market, sales are not quite what they were back in the "peak years" of 2005-2007. While Dubuque's housing market has held quite well in terms of appreciation vs. the majority of the USA, the total number of sales are not quite back to the outstanding sales we posted during the peak. See my blog posts about Dubuque's statistical performance over the last couple of years here:

http://www.riverbankstocornfields.com/2010/11/30/dubuque-hou…

and here

http://www.riverbankstocornfields.com/2010/11/22/dubuque-rea…

Also, keep in mind assessed values aren't quite the same thing as market values. I often refer to assessed values being the same as a broken clock - correct only twice per day. Assessed values given by the local government are not appraised values, they generally are looslely based in general terms on size, age, bed-bath-garage confiuration, and neighborhoods in which they are placed. Of course there are many other factors the local assessor can fill you in on, but I think even they would admit that you wouldn't want to base a listing price on the current assessed value.

Any follow-up questions please don't hesitate to get hold of me...

Rob
0 votes Thank Flag Link Thu Jan 13, 2011
I believe what happened on that property is as follows : The original buyer bought a run down building for $94k and restored it to near original state ( building is in a historic district ) and resold it in almost new condition for 360k. The buyer then was foreclosed on and the building was resold at a sheriff's or tax sale for 206k. The first-time homebuyer credit from last year accelerated sales in this period last year thus skewing the numbers for this year.
0 votes Thank Flag Link Thu Jan 13, 2011
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