The dollar figure on your provincial property assessment notice is not necessarily representative of your home’s market value. Here is a look at BC assessment value and market value, what the

Dated: February 22 2021
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What is BC Assessment?
The BC assessment provides a value for the government to determine property tax amounts in British Columbia. The assessment authority will determine the values estimated from July the previous year, so the current assessment will be calculated from July 2020. This is a predictable base for taxation but does not necessarily impact the real estate market.
How Is BC Assessment Calculated?
It’s unfeasible to expect the appraisers to visit each home in person, so they have to rely on the general property characteristics that place the most emphasis on the value of a home and Automated Valuation Models. As mentioned, this would be based on information from the previous July, so it can be somewhat unreliable.
Property Characteristics Used for Calculation
B.C. Assessment Tools
The B.C. Assessment Authority gives you insight into the property market of whatever area you’re interested in. Check out their website to find relevant property information.
Information Collected
Property details: This includes the B.C. assessment value for the current and previous year, sales history; property size and number of rooms; and legal description.
Sold properties: You can compare property sales and compare them with their assessment values.
Neighbouring properties: You can compare the assessed value of houses in the neighbourhood.
Impact of BC Assessment on Property Taxes
It’s important to note that your B.C. assessment value doesn’t have a massive impact on your property taxes as it’s more to do with the area as a whole. The neighbourhood requirements such as garbage collection and street cleaning still need to be factored in, so lowering taxes might impact service delivery.
What Does a BC Assessment Mean for Homeowners?
For most of us, property is our most valuable asset, so, understandably, there’s a concern when your assessed property value decreases. Particularly for first-time homebuyers or those looking to sell their property and are concerned they might not get their return on investment.
There is also the worry that you can’t renew your mortgage if you owe more than your current home’s assessed value. Fortunately, the B.C. assessment value doesn’t necessarily impact your home’s market value. Regarding mortgage renewal, if you have good credit and are renewing with the same lender, there should be no problem.
What is the Market Value of Your Home?
When it comes to calculating your home’s market value, there are quite a few more factors in the assessment. Your market value is what a buyer is willing to pay for it, but there are quite a few considerations to get to that amount.
What Factors Impact the Market Value of the Home?
What Are the Main Differences Between the Assessed and Market Value?
It’s quite clear that the B.C. assessment value will not always correlate with the actual market value, and here are the three main reasons why:
How to Find Out How Much Your Property is Worth
While the B.C. property assessment provides you with an indication of your property value, this is a foundation for the government to assign a tax amount to your property. It can often be the case that two similar properties are assigned different assessment values, and this value doesn't necessarily correlate with your property's market value. If you're looking to get a home appraisal, you need to know that it's not a DIY option; you'll need to rely on industry specialists to assist.
When Would You Get an Appraisal Then?
A real estate professional/Realtor will be able to give you an accurate indication of your property’s market value, which is useful if you’re:
Benefits of an Appraisal
If you have any concerns regarding discrepancies between the B.C. assessment value and the expected market value, then it’s worthwhile consulting with real estate professionals for a full appraisal. More than just giving your home a credible value, they can indicate areas of improvement that could further enhance property value should you wish to sell at a later stage.
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