By now you have received your assessment and could very well be excited from what you received or disappointed.
Regardless of which, here is a quick list of are reminders about what your assessment really means for your property.
1. Assessments are determined in July of the previous year and are mailed out six months after. We all know a year in real estate can make a huge difference.
2. Remember, no one actually comes to your house to assess the value. So how can it be completely tied to your home's market value?
3. If you get a low assessment your taxes will go down. This is not necessarily true, as municipalities still have to budget for the next year and as we all know the cost to run city operations isn’t cheap. It also depends on the surrounding properties. If your assessment went down 10% and your neighbours 5%, you might get a slight break. But if the reverse happens, you might just end up with a higher bill says BC assessment.
4. If you purchased in the height of the market and your property value dropped, you won't be able to qualify for your mortgage. Also, most likely not true. Unless you are refinancing with a new bank, or not keeping up with your payments – your bank will be happy to keep letting you pay your mortgage off.
5. Market Value is determined by what a buyer is willing to pay for a home, and what the seller is willing to accept.
6. Your neighbourhood Realtor will have more statistical data and knowledge about your area and will be able to help you determine the selling price of your home more so than a government document written a year ago.
Articles Referenced in this blog:
BC Assessment - FAQ