BC ASSESSMENT NOTICES
A report by Rick Dove
It’s that time of the year again – BC assessment notices have arrived in the mail, and this usually leaves all property owners, and home buyers, thinking this is what their home would sell for. But there is a difference between assessed value versus market value.
The assessment authority provides values that are determined as of July 1, of the previous year. This means, that even though you are getting your assessments in January 2021, that value is estimated from July 1, 2020. A lot can change in the real estate market in 6 months - especially during a pandemic. In addition, properties are rarely visited in-person by provincial appraisers, hence, interior renovations, modifications, and other upgrades are generally not taken into consideration or reflected in the assessment.
The assessed value on your property provides the foundation for municipal and provincial taxation, and that is the real purpose of BC Property Assessment – to provide a measure for the government to tax your property. In turn, this helps fund the many community services provided by local governments as well as public education and health care. The property assessments shouldn’t be solely relied upon as the market value of what your home could sell for in the current market.
There are a lot of factors that go in to determining the market value of a home and what the buyer is willing to pay for it.
The key differences between assessed value vs market value are:
- Supply and demand can strongly influence market value
- Upgrades, renovations along with location, age, and square footage influence market value
- Final sale prices for comparable homes sold within a 5 km radius are considered in a market value assessment
Real estate agents provide complimentary Current Market Assessments (CMA) to ensure you understand the value of your home in today's market.
If you would like a complimentary market assessment or if you just have further questions, please feel free to call or text me (604.365.2552) - I'm here to help!