You should have received your 2018 BC Property Assessment Notice in the mail and if you are in the Nanaimo area then you likely saw a nice increase in property value. Of course, this will mean that to follow will be an increase in property taxes but be happy that your investment has gone up!
Now, it is true that if your assessed value increased then that will reflect an increase in the value of your property but the number is generally wrong in representing the current market value of your home.
Actually, you should be happy to know that generally the BC Property Assessment value is typically quite LESS than the actual market value of your home.
Two main reasons why:
1- Your Assessment is Out of Date
The BC Property Assessment appraisal reflects the value as of July 1st of the previous year.
Therefore, value assigned to your home is really out of date! When you received your assessment, it is already 6 months out of date. In Nanaimo and the Parksville/Qualicum area, the value of your home should have gone up 4.2% and 5.2% respectively. If you go to list your home in December and look to your current BC Property Assessment for reference, it’s actually a year and a half out of date!
2 – The BC Property Assessment Doesn’t Take Into Account Important Features of Your Home
The BC Property Assessment value is based on characteristics of your home such as size, layout, age, location, view and also takes into account properties with similar characteristics. However, it’s rare that a provincial appraiser will step inside your home. Honestly, they don’t have the time and resources!
To get a truer indication of the market value of your home, a Real Estate agent can give you a market evaluation or a CMA report (Comparative Market Evaluation Report). Real Estate agents have training and close knowledge of the current real estate market to better evaluate the value of your home. On top, after a listing appointment they have the opportunity to pay attention to interior details and home features which can be assigned additional value. Of course the true value of a home isn’t determined until it sells but generally the selling price isn’t too far off from the list price.
If you are thinking of selling your home, I’m happy to provide a free market evaluation to get you started. Just get in touch !
Also, If you are concerned that your assessment is too high and your taxes don’t deserve the increase tied to it then take a look online and compare your property to the assessment given to similar properties in your area. If you still think that their assessment isn’t fair then you can appeal your assessment by January 31st.