In January this year we received our BC Property Assessment notice. You were either pleasantly surprised or absolutely horrified depending on your situation. Many of us in the Kootenay Boundary area have had a significant increase in our assessed value. In fact, a 33% increase on average from 2021 according to BC Assessment News (reference, click here). A common question I get when doing comparative market analysis on a property is “why is this number so much higher (or lower as the case may be) than my BC Property Assessment?”. 

Assessed Value vs Market Value

There can be a major difference between an assessed value of your property and an appraised market value. BC assessment provides a value for the government to determine property tax amounts. The appraisers are not able to visit each property individually, so they have to rely on the general property characteristics. Some of the characteristics used for calculation are: the location, the size of the property, the size of the lot, view from the home, the property age, any home additions such as a deck, and the sales’ prices from similar homes in your area.

In contrast, the appraised market value considers the location of your property, it’s proximity to transportation routes and amenities, the age of the property, the size of the lot, the lot’s capacity to have future builds, the size of your home’s interior, your home’s layout, whether there are carports or garages, any renovations that impact the home’s value such as appliance upgrades, and whether it is a buyer’s market or a seller’s market. A Realtor also considers current demand and supply, the comparable sales in the area within the last three months and how well the Realtor markets the property, in other words, how much exposure it gets.

Main Differences

In summary, the main differences between an assessed value and fair market value are:

1. Physical Visit: BC Assessment is typically not visiting your property, they are pulling data from a number of properties within your area and doing calculations. An appraiser or Realtor is physically present in your home and experiences it firsthand. This can make a huge difference.
2. Number of Factors: A Realtor takes into account a lot more factors than BC Assessment. The evaluation that a Realtor does is much more comprehensive. She physically examines the space and landscape and takes into consideration the psychological factors of the potential Buyers.
3. Current Trends: A lot can change in 6 months. What might have been true about the property when BC Assessment did their calculations, may not be true in 6 months. A Realtor is working with current factors and doing a real-time evaluation.

It is challenging to see the fluctuations in your home’s value, especially if it has decreased. The best thing to do if you really want to see how much your home could sell for in the current real estate market is to have a Realtor do a tour and market evaluation. 

Find Out How Much Your Home is Worth

If you’re curious about what your home could sell for, feel free to call, text or email me for a free, no pressure, no obligation market evaluation

250.443.9088

jazz@propertiesgf.com

I will be happy to help.

(References: click here.)