How Does your BC Assessment Affect You?
If you’re a homeowner here in the Greater Victoria area, then you likely have received your 2016 BC Assessment. So, how does this affect you?
Last year, most significant gains were seen in houses, which is a direct reflection of the hot single-family, detached house market. In the condo market, some have seen increases and some have seen decreases, but does this affect your market value?
The simple answer is, “No, it doesn’t.”
When the market began to contract back in 2010-2011, it took some time before BC Assessment came back in line with market values and, remember, your BC Assessment is supposed to be a conservative estimate of market value. As the market increases, there will also be a lag in assessed values. Assessments are done annually while the market changes monthly. When the market last contracted, assessed values were slow to follow suit, and I believe in the first year after the market softened, they still went up.
BC Assessment uses market data to determine your property’s assessed value, but the difference between assessed value and market value is buyers! Nobody comes to view your condo when they are determining the assessed value, yet buyers are coming in and out of your home until one writes you a cheque telling you what your home is worth. This is why market value and assessed value will almost never line up.
If you are thinking of selling, before you put too much stock in the assessed value, get the professional opinion of a #CondoExert, and we can probably put a few extra dollars in your pocket.