What is the difference between BC Assessment and Market Value?
The real estate market is the single biggest influence on market values. Market forces vary from year to year and from property to property. The market value on an assessment notice may differ from that shown on a bank mortgage appraisal or a real estate appraisal because BC Assessment’s appraisal reflects the value as of July 1 of the previous year, while a private appraisal can be done at any time.
When reviewing the annual property assessment notice, property owners should check that it reasonably estimates what the property would have sold for on July 1 of the preceding year, and that it relates to the value of other properties in the neighbourhood.
While BC Assessments are a guide to what your property may be worth, it also relies on data from the previous year. A real estate assessment uses on the most recent real estate market data (within the last 3-6 months) to determine what the property is worth in today’s current market.
Why are Assessments based on Market Value?
Market value assessment is widely considered to be the fairest system for distributing the property tax burden.
In any tax area, properties of equal value contribute the same tax, while higher-value properties contribute more than those with lower values. Both assessors and taxpayers can readily check assessments by comparing recent sales and assessments of similar properties in the neighbourhood.