Assessed Value vs. Market Value. What’s the Difference?

By now, you will have received your BC Assessment in the mail.  You’ll notice that there is likely a modest increase as compared to last year which was typically a lot higher for most homes.

BC Assessment is the determination of a property’s market value, classification and applicable exemptions and is the basis used for determining the share of municipal and provincial property tax owners will pay each year.

When establishing market value, BC Assessment appraisers consider each property’s unique characteristics, lot size, layout, shape, age, garages/carports and more.  Comparisons of recent sales are also used.

So why is the assessed value often so different from market value?  BC Assessments reflect the value as of July 1 of the previous year, while a market value is done in real-time.  We all know that market values can change drastically from month to month with things like interest rates, economies, mortgage and government rules changing things.  An increase in inventory will often lower prices, whereas a shortage of homes will increase value. 

If you feel like your BC Assessment is not correct, there is an option to appeal it.  I have personally done this in the past and been successful.  I’d be happy to discuss it with you if you require some additional information to support your dispute.  The deadline for appeals is January 31.  For more information, here is a link for appealing your Assessment:  https://info.bcassessment.ca/Services-products/appeals

*Some information is taken from www.bcassessment.ca