BC Assessment notices are arriving in mailboxes this month, and if you’re like many homeowners, you’ve probably opened it, raised an eyebrow, and wondered:
“How did they come up with this number?”
We’ve noticed a big increase in people using the HomeWorth tool on our website recently — and that makes sense. When assessment values come out, curiosity naturally follows.
Here’s a quick breakdown to help you understand what you’re looking at.
What is a BC Assessment value?
BC Assessment provides an estimated market value of your property as of July 1 of the previous year, assuming normal sales and typical market conditions.
It’s used primarily for property tax purposes, not to determine what your home would sell for today.
How is your assessed value determined?
BC Assessment looks at several factors, including:
• Recent sales of similar homes in your area
• Lot size and location
• Age, size, and style of the home
• General market conditions at the time of assessment
What they don’t always capture accurately are things like:
• Interior renovations or updates
• Condition and level of finish
• Layout, views, or unique features
• Current buyer demand
-potential for subdividing
This is why two seemingly similar homes can have noticeably different real-world values.
Why assessment value ≠ market value
One of the biggest misconceptions is that assessed value equals what your home would sell for.
In reality:
• Assessments are dated (based on last year’s market)
• They are mass-produced valuations
• They don’t reflect today’s buyer behaviour
In fast-changing or nuanced markets, the gap between assessment and market value can be significant.
Over the years, we have seen significant fluctuations in the Okanagan, where properties/homes have sold for 20%+ over assessed value and then more recently, depending on the neighbourhood, we are seeing some homes/properties selling 10%+ below BC assessed value.
This can be important to you if you are selling, but also if you are not selling, as it has property tax implications. 99% of property owners in BC accept their assessments and the 1% who appeal the rate generally have a 9% success of having their rate appeal accepted.
Visiting our HomeWorth page can provide you with a quick and easy true valuation of your home, as we utilize recent market data and current buyer activity. This provides a more realistic price range for your home.
It’s a great starting point if you’re curious — or if you’re wondering how your assessment compares to today’s market.
🌐 https://okeefe3.com/Sellers/HomeWorth
A current market evaluation, based on comparable sales and active buyer demand, is always the most accurate way to determine value.
If you’d like a no-pressure review of what your home could realistically sell for today, we’re happy to help.
Warm regards,
Rod O’Keefe
O’Keefe 3% Realty
📞 250-545-9039
🌐 www.okeefe3.com
Curious? You can check your home’s estimated value at any time using our HomeWorth tool on our website.