It is that time of the year again, on January 1st the new BC Property assessments come out for the year. It’s both an exciting and stressful time for homeowners. Since many people assume things about property assessments that are not necessarily true, we are going to fact check these 3 common myths.
Property Assessments Myth Number 1 – Price
My home is now worth this much (insert the new assessment of the home) because BC Property Assessment said so.
So wrong. In today’s hot market your home is worth way more than the BC property assessment. The assessment comes out on January 1st of the new year, but the comparable sales used to determine that number came from July of the previous year. That is 6 months of data that is missing. In today’s market that could represent hundreds of thousands of dollars difference. If we went back to 2012 when the market was stale, homes were selling for way below their BC property assessment.
Property Assessments Myth Number 2 – Tax Increase
If my BC Property assessment went up, my taxes will go up in the same percentage.
Wrong again. The Cities use the BC property assessment to tax you, this much is true. Take the city of Coquitlam for example. The budget will increase 3.48%. If your home goes up less than others you will see a smaller increase but if it goes up more, you may pay more. A 25% increase in property value does not translate into a 25% increase in taxes. The mill rate or tax rate is reduced. So, if your home increases in value at the same rate as everyone else your increase should be close to the average.
Property Assessment Myth Number 3 – Value
BC Property Assessment is an accurate way to determine the value of a property.
You guessed it, wrong again. Very rarely do BC Property Assessment appraisers get to see the inside of a home. The most important part of an evaluation to determine value is to physically walk through the home to see some very important factors. What is the condition of the property? Is there a lot of wear and tear? Value drops when a property has been treated poorly. Are there upgrades and renovations done? Traditionally, when you upgrade or renovate and you do a good job with the finish product, the value of your home goes up. Those are two examples that demonstrate how value is affected up and down. In both cases the average BC Property Assessment appraiser would not be able to know this information.
If you are planning on selling soon, don’t rely on the BC Property assessment, instead call us. We would be happy to give you a Current Market Assessment and discuss the recent sales in your neighborhood.
If you are not planning on selling anytime soon then don’t sweat it. Pay your taxes as they do go to good use to better your community and services. Find your Property Assessment here: https://www.bcassessment.ca/