BC Assessment letters are on their way to mailboxes across the province. If you haven’t received yours yet and would like to know the assessed value of your home you can search your address on their website.
But before you open that letter, be aware that the assessed value of the property will likely be very different from the reality of the current housing market. These assessments are based on the housing market as it was on July 1, 2022, back when the real estate market was different than it is now. If you want to know the true market value reach out and I will send you some recent comparable sales from the last few months.
Here’s what you need to know about the BC Property Assessment, what it means for homeowners, and what the market value of your home really is.
What is the BC Assessment and how do they determine the value of your property?
The main purpose of the BC property assessment is to determine how much municipal or provincial tax the government can tax each homeowner. An assessment is an estimate of a property’s market value as of July 1.
It’s important to note that these property assessments are all done electronically. Appraisers don’t walk through every home and therefore they do not take into consideration renovations or interior layouts, etc. They base their assessments on a property’s location, size (of both the lot and the home), age, garages, and any add ons that were made with permits.
The second key factor to remember is that the BC Assessment if from July of the previous year. That’s six months worth of inflation, interest rate changes and other factors that aren’t reflected in the property assessment.
According to the Vancouver Sun, “The updated assessments arrive after a big year in real estate between July 2020 and July 2021 in which house prices across Canada jumped 34 per cent. This growth continued from July 2021 through the start of 2022.” However, as inflation began to take hold, the government responded by raising interest rates, which led to a cool down in the housing market.
As a result, B.C. Assessment has advised homeowners that the value of their property as of July 2022 could be different from the reality of the current housing market.
What determines the market value of your property?
These are a few of the main factors that determine your property’s market value, or what price you would list your home for if you were going to sell it:
-Location and proximity to businesses, schools, restaurants, parks, etc.
-Lot size for detached homes
-Interior layout, sizes, age and desirable features
-Strata bylaws, contingency funds, etc. for condos and townhouses
-Upgrades and maintenance done to the home, especially more recently
-Recent comparable sales
What is your home worth?
If you’re curious what you could get for your home today, you can fill out the Home Evaluation request form on my website by clicking here. We do a Comparative Market Analysis to evaluate the prices of properties similar to yours that have recently sold in your area. This analysis will give you a better idea of your property's market value, one of the first and essential steps as you prepare to sell your home. All it takes is less than a minute to complete and submit the form. Then, let us do the work for you!