Below we dispel some of the most common myths about assessed value and how they relate to market value and property taxes.
MYTH #1: Market value and assessed values are the same
Fact: the market value of a home is determined by supply and demand at the time the home is listed for sale. This can greatly vary from the property’s assessed value. There are a few reasons for this:
- The assessed value is based on July of the previous year however the information is not released until the following January. The market can fluctuate from month to month, so the assessed value information is already dated by the time it reaches homeowners.
- BC Assessment does not have the capacity to walk through every home in BC to determine what changes have been made to the home and what condition the home is in. As an example, some homeowners have finished basements or put in suites without permits, and this information may not be accessible by BC Assessment. They also place a large value on the land and very minimal value on the home. Depending on when the home was built that greatly impacts the value on BC assessment, which can vary greatly to market value.
- If the assessment has always been low, it’s unlikely that a homeowner we appeal the value, as they may be worried their property taxes will go up
MYTH #2: If my assessment goes up, my property taxes go up
Fact: Your taxes are based on your municipality’s budget which usually comes out in March. They look at the assessed values for every home in the municipality and determine a mill rate to charge in order to meet their budget for the year. If everyone in a neighborhood has an increase in assessed values, then it will be relative how much the taxes goes up. If someone’s assessed value increased dramatically more than their neighbour’s around them, then they may see proportionately more taxes compared to their neighbours.
MYTH #3: I’m stuck with the assessed value I get.
BC Assessment has an appeal process that takes place in January once the new values come out. If you need help appealing your assessment, we are happy to help you with this appeal by selecting comparable properties in your neighbourhood that have sold recently.
We hope you have a better understanding of Assessed Values but if you have any questions, please contact our team and we are happy to help!