Difference between Assessed Value (BC Assessment) and Market Value

Recently, VIREB has started adding the assessed value to listings that we Realtors send out to our clients. It is important to note that there is often a  difference between assessed value (BC Assessment) and Market Value

 Assessed value is the Provincial system by which your property taxes are based on. They take into consideration the size of the house and materials used and age factor then determine a value by which you are charged a percentage rate on. These assessed values may be higher than or lower than the market value. Typically they are often around 80%-90% of the market value.  However, occasionally I have seen assessed values at over market value although generally most are under market value. 

This past year, a number of Nanaimo homeowners have complained that their assessed values have gone way up. Sometimes, if you see a big jump in your assessed value, it is because BC Assessment may be trying to catch up to the market.

Market value is what a typical buyer is willing and able to spend for a house like yours. This market value is determined by sales activity in your neighbourhood for your type of house.

As a Realtor I will help you determine the market value of your home.  I will prepare a CMA (Comparative Market Analysis) that outlines the price of homes that are for sale and have sold in your neighbourhood.  I will compare only those homes that are similar to your home in terms of age, size, lot size, style etc.

I invite you to also read my post 'Are you wondering if you should appeal your BC assessment?'

 If you would like additional information on the difference between assessed value (BC Assessment) and market value please contact me.

Read more: Pricing your house to sell