If you\u2019re ready to buy a house in Madison, get ready for a competitive real estate market where houses sell in less than a month. Madison sellers, like the city itself, are family-oriented and a personal touch like a buyer love letter, coupled with a competitive financial offer, can go a long way in helping buyers secure the home of their dreams.<\/p>\n
To assist you with your home search, we\u2019ve compiled this complete guide on how to buy a house in Madison, with help from local real estate experts whose insights and advice can help make your offer stand out amongst the crowd. We\u2019ve also consulted local newspapers and available data to help you better understand local real estate trends.<\/p>\n Home values in Madison have risen for the past seven years<\/a>. In 2019, the average home price topped $300,000. In 2020 sales in Dane County, where Madison is located, were up 19% over 2019, and the median price jumped 10%<\/a>.<\/p>\n \u201cIt\u2019s always been a desirable place to live. It\u2019s a beautiful city,\u201d says Dan Chin<\/a>, a top real estate agent in Madison with eight years of experience in the field. \u201cWe have quite a bit of pent-up demand.\u201d<\/p>\n In addition to rising home values, the average Madison home is slightly less expensive than $313,000, the U.S. median home price in February of 2020<\/a>, according to the National Association of Realtors, making it a great place for people to find an affordable home that will grow in value over the years.<\/p>\n Madison is a smaller city at just over 250,000 residents, but that doesn\u2019t mean it doesn\u2019t have plenty of attractions. Home to the state capital and the University of Wisconsin-Madison<\/a>, the city has plenty of restaurants and small businesses. Its top neighborhoods cater to everyone from young professionals to families. The market is dominated by single-family homes, but condos and townhouses can be found in neighborhoods closer to the university and the state capital.<\/p>\n \u201cThere\u2019s a very high quality of life, with the lakes and state parks and the bike trails,” says Madison home inspector Jill Hauk<\/a>, who\u2019s lived in the area for 16 years. \u201cAnd there\u2019s a good food scene, good beer brewing scene.\u201d<\/p>\n Also known as Marquette<\/a>, this neighborhood located on Madison\u2019s Williamson Street is home to some of the city\u2019s best local shops, restaurants and live music venues, including a pig in a fur coat<\/a> Mediterranean restaurant and Crystal\u2019s Corner<\/a>, a bar that frequently features live music. While townhomes and condos can be found in the area, it\u2019s best known for its historic homes with a variety of architectural styles, ranging from Greek Revivals to Arts and Crafts bungalows. The neighborhood\u2019s young, bohemian vibe is perfect for professionals just starting out.<\/p>\n One of Madison\u2019s largest neighborhoods, Tenney-Lapham<\/a> is also extremely livable. AreaVibes gives the neighborhood an excellent rating<\/a>, earned by its upscale atmosphere. High-rises, condos, and apartments are common in this neighborhood as it grows to match the rest of Madison\u2019s East Side. Music lovers will embrace the area as it is home to two of Madison\u2019s best venues \u2014 the High Noon Saloon<\/a>, which features mostly indie acts and local bands, and Breese Stevens Field<\/a>, which has hosted shows from country music star Darius Rucker to pop rock duo Hall & Oates.<\/p>\n Wexford<\/a> is considered the top neighborhood in Madison<\/a>, according to AreaVibes. Wexford offers residents easy access to public transit<\/a>, great schools, and proximity to several large parks, including Stricker\u2019s Pond Conservation Park<\/a>. The close-knit neighborhood is ideal for families who can enjoy events like the annual Fourth of July Parade and Picnic and the end-of-summer potluck picnic.<\/p>\n If you want to buy a house in Madison to take advantage of the city\u2019s wide array of outdoor recreational offerings, then Westmorland<\/a> is the neighborhood for you. The area is named for Westmorland Park<\/a>, which offers residents nearly 12 acres of green space and an extensive network of bike trails linking it to University of Wisconsin-Madison\u2019s arboretum and downtown Madison. Westmorland is also home to seven of the city\u2019s Lustron homes<\/a> \u2014 a unique style of home made from prefabricated porcelain steel.<\/p>\n Shorewood Hills<\/a> is another neighborhood built for outdoor lovers. Dedicated to wildlife preservation, Shorewood Hills is home to nine parks and shares a border with Lake Mendota. It\u2019s not uncommon to see residents kayaking and water-skiing as well as hiking and biking. Its A+ rated schools<\/a> make it an excellent choice for settling down and raising a family.<\/p>\n Vilas<\/a> is one of Madison\u2019s historic neighborhoods. With its abundance of greenery and lines of Victorian and Tudor homes, you\u2019d never know that this quiet, family-oriented neighborhood is located on the edge of the University of Wisconsin-Madison\u2019s campus. Walking to the Henry Vilas Zoo<\/a> or taking a jog along the 6-mile Lake Wingra loop are just a few of the neighborhood\u2019s many perks.<\/p>\n For those looking for a city that provides access to the great outdoors, Madison should be a top contender. The city is home to four lakes, numerous parks, and a plethora of biking and walking trails. Residents can be found water skiing or kayaking<\/a> on Lake Mendota and strolling through 16 acres of flowers, trees, and wildlife at Olbrich Botanical Gardens<\/a>.<\/p>\n In addition to great parks and an active downtown, Madison and the surrounding area sport a number of A-rated school districts, making it a perfect city to raise a family. Waunakee High School, which is the No. 1 school in the Madison metro area, is the 10th best school statewide<\/a>, per U.S. News and World Report<\/em> rankings, and the top five districts in the area have an A rating<\/a> on Niche.<\/p>\n Madison has long been a seller\u2019s market, but in this past year rising home values and recent seller behavior have made the market even more aggressive.<\/p>\n In 2020 sellers put off listing their homes due to the COVID-19 pandemic, creating a shortage for buyers. In fact, available inventory in Madison dropped from a 2.6-month supply to 1.6 months<\/a> during 2020.<\/p>\n While the housing market is competitive in Madison year-round, it is especially active between March and September, when many people find themselves moving so their children can attend school in a top district. After school is out in June, Madison homes sell for 4.33% more than the yearly average<\/a>. \u201cThe market values are driven primarily by the school district. So, you\u2019re going to move after school is out and before school starts,\u201d Chin says.<\/p>\n If you want to buy a house in Madison, February and March are the best months to make your purchase. In March, homes typically sell for 4.78% less than the yearly average.<\/p>\n At 44 years<\/a>, the median age of Madison homes is similar to the median age of homes across the U.S. (43 years). If you want to buy a house in Madison that’s on the older side, keep in mind that it may require some extra maintenance and repairs. Regardless of whether you’re eyeing a historic home or newer construction, it’s vital that you get a home inspection<\/a> to identify any potential issues before you buy.<\/p>\n Madison gets an average of 42 inches of snow a year<\/a>, 14 inches higher than the U.S. average, creating picturesque winters full of activities like sledding and cross-country skiing. However, the snow \u2014 and hail in rainy months \u2014 can be tough on a home\u2019s roof. \u201cThe roofs can take a little bit of a beating,\u201d Hauk says. Fortunately, homeowner’s insurance policies typically cover repairs for weather-related roof damage.<\/p>\n With four lakes, some of Madison\u2019s homes are located in FEMA floodplains and homeowners who live in those areas will need to purchase flood insurance. In Wisconsin, the average cost for this additional coverage is\u00a0$973 per year<\/a>. City zoning ordinances limit development in flood-prone areas, however, so few homes fall into the 100-year floodplain<\/a>, FEMA says.<\/p>\n South central Wisconsin, where Madison is located, is known for having higher-than-average levels of radon \u2014 a naturally occurring, radioactive gas \u2014 and one in 10 homes statewide<\/a> has high levels of the gas. As a result, potential buyers are encouraged to get a radon test. These tests are typically inexpensive \u2014 kits can be purchased for as little as $10<\/a> \u2014 and they can be added onto a standard home inspection.<\/p>\n If testing shows high radon levels, there\u2019s no reason to fret. An EPA-licensed inspector will typically provide a free remediation estimate and they often guarantee that radon levels will be acceptable if work is done on the house. The cost of radon mitigation is usually around $1,200<\/a>. As is typical in most areas where radon is common, sellers usually will pick up the cost for radon mitigation if needed, and many will have tested the home<\/a> before putting it on the market.<\/p>\n Working with a real estate agent during your home search is a must for navigating Madison\u2019s housing market. Top buyer\u2019s agents<\/a> in Madison complete 1.8 times more transactions than an average agent and save buyers $46,386.<\/p>\n In this competitive landscape, buyers need to be aggressive if they want to buy a house in Madison. One way buyers can get an edge is by making an offer before a home is publicly listed. Chin says in the first quarter of 2021, 29 of the accepted offers for his firm were on homes that were not yet on the market.<\/p>\n \u201cWe\u2019re writing sight-unseen offers to get an edge up on the competition.\u201d<\/p><\/blockquote>\n Chin says another way buyers can make sure their offer is competitive is by including an escalation clause<\/a>, which allows a buyer to increase their offer up to a set amount if a seller receives another offer that is higher than the buyer\u2019s initial offer.<\/p>\n![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/04\/buy-house-in-madison-biker-666x381.png\")
<\/a>Why are buyers sold on Madison?<\/h2>\n
Homes are affordable and hold their value<\/h3>\n
A neighborhood for everyone<\/h3>\n
Willy Street<\/h4>\n
Tenney-Lapham<\/h4>\n
Wexford<\/h4>\n
Westmorland<\/h4>\n
Shorewood Hills<\/h4>\n
Vilas<\/h4>\n
Plenty of outdoor recreation<\/h3>\n
A perfect place to raise a family<\/h3>\n
![\"Kids](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/04\/buy-house-in-madison-swing-666x381.png\")
<\/a>Navigating the Madison housing market<\/h2>\n
![\"This](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/04\/buy-house-in-madison-snow-666x381.png\")
<\/a>Things to consider before buying in Madison<\/h2>\n
Older houses<\/h3>\n
Insurance considerations<\/h3>\n
Elevated radon levels<\/h3>\n
Find a top buyer\u2019s agent in Madison<\/h2>\n