Once upon a time, assessed values had little to do with the price of a home in Verona. The town, after all, went almost 30 years without a revaluation. Then we had a revaluation, and as home prices declined during the recession, some Verona homes were listed for sale at less than their assessed value. Then we got to a stasis, with the two figures in almost perfect alignment.
But three years of rolling reassessments–and an improving economy–are changing the relationship between assessed value and listing price in Verona again. MyVeronaNJ.com looks at the underlying assessed value of every home we feature in our weekly real estate column , and we’ve seen the two numbers diverge. In the last month alone, we’ve seen homes listed at 18 to 36% above their assessed value.
Just over 100 single family homes have been listed for sale in Verona since January, almost all of them at more than their assessed value. MyVeronaNJ.com compared the asking price to the assessed value and, after filtering out several homes that were gutted for complete renovations, found that the after difference was 21%.
Elizabeth Morris, a Verona resident who is a realtor with Keller Williams’ NJ Metro Group, notes that while assessment values are established by towns for tax purposes, “real estate selling prices are a direct reflection of a supply and demand marketplace. It is fluid,” she adds, “constantly changing–not unlike a stock price.”
Morris says that while Verona sellers have experienced higher selling prices of late–thanks to a limited inventory of updated homes, strong school ratings, and young families moving from Hoboken, Weehawken, Jersey City, and New York City–there are limits to higher prices.
“These buyers are smart,” says Morris. “They are savvy and they are well educated in terms of home values. They are more sensible than buyers during the boom, and they absolutely will pass on a home priced above market value. They want what they want in the way they want it.”
We won’t know for a while how these higher prices are faring. Prices have been lowered on several houses that have been listed since January, even some of those that have come to market in the last 30 days. It takes longer for homes to go to contract now that in the boom years, and banks are much more vigilant about not writing mortgages on inflated value. In the meantime, there are eight more homes on the market in Verona this weekend and six open houses.
New Listings
349 Bloomfield Avenue #148: 1 bed, 1 bath condo. Newer kitchen, near transportation and shopping. $179,000.
7 Durrell Street: 4 beds, 2 baths. Updated kitchen, first-floor bath. Finished basement. $375,000.
13 Floyd Road: 3 beds, 2 baths. Fireplace, paver patio. $412,000. Open house Sunday 1 to 3 p.m.
26 Brookdale Avenue: 3 beds, 2 baths. Ranch with updated kitchen, finished basement. $424,900. Open house Sunday 1 to 4 p.m.
39 Linden Avenue: 3 beds, 2 baths. Deck with hot tub, flat yard. $459,000.
71 Park Avenue: 4 beds, 2 baths. Enclosed front porch, formal dining room. $489,900.
20 Mountainview Road: 5 beds, 3 baths. 1870 Victorian on large lot. Needs restoration and upgrades. $569,000.
58 Pease Avenue: 3 beds, 3 baths. Brick center-hall colonial with deck and paver patio. $620,000. Open house Sunday 1 to 4 p.m.
Open Houses
13 Floyd Road: 3 beds, 2 baths. Fireplace, paver patio. $412,000. Open house Sunday 1 to 3 p.m.
26 Brookdale Avenue: 3 beds, 2 baths. Ranch with updated kitchen, finished basement. $424,900. Open house Sunday 1 to 4 p.m.
19 Franklin Street: 3 beds, 1 1/2 baths. Family room and finished basement. $449,000. Open house Sunday 1 to 5 p.m.
5 Dodd Terrace: 5 beds, 3 baths. Master with double closets, potential in-law suite. $620,000. Open house Saturday 1 to 4 p.m.
58 Pease Avenue: 3 beds, 3 baths. Brick center-hall colonial with deck and paver patio. $620,000. Open house Sunday 1 to 4 p.m.
83 Fairway Avenue: 3 beds, 3 baths. Open floor plan, two bedrooms on lower level. $725,000. Open house Sunday 1 to 4 p.m.
Price Changes
75 Derwent Avenue: 3 beds, 2 baths. Updated kitchen, spacious family room. Cut another $20,000 to $379,000.
171 Grove Avenue: 3 beds, 3 baths. Open plan split-level. New kitchen. Price cut $4,000 to $458,000.
28 Howell Drive: 5 beds, 3 baths. Price cut $30,000 to $799,000. First-floor bedroom, designer kitchen, large yard.
