In this episode, I will articulate what a BC Assessment is and how to figure out the true value of your home
I am Jessi Johnson, guiding you with 18 years of experience as a mortgage broker and realtor.
First off, BC assessments are expired calculations
They are calculated based on July 1st of the previous year so they can be upwards of an entire year outdated
A lot can happen in a short period of time when it comes to real estate property values, especially in Greater Vancouver!
You might be thinking, if I can’t trust BC assessment correctly to assess the value of my property, how can I figure this out?
There are two solid methods:
#1 – Hire a local professional licensed property appraiser
#2 – Seek guidance from a local expert realtor
The appraiser will cost you $300 to $500, on average but you would generally only use this when it comes to getting a mortgage
If you like in Greater Vancouver, just call me and I will help you figure it out
Factors that affect your assessed value are:
- Location of property
- Type of home
- Square footage of the interior and exterior of the home
- Original age of the home
- Renovations claimed through permits
- Number of bathrooms, bedrooms, if it has a basement suite, etc
- Improvements relative to the area
- Proximity to a busy street, etc
If renovations are completed but permits were not obtained for everything, the government has no idea you’ve increased the value of your property
So, this won’t reflect on your government assessment.
As a potential seller, it’s important to realize that most home buyers will look at the assessed price (even when it usually doesn’t reflect the correct market value) and may try to use it as a negotiation tactic
While I have your attention, please like this video to help me with the algorithm…and, don’t forget to subscribe to the channel
Do I use BC assessments in my CMA’s?
First off, CMA is the acronym for comparative market analysis.
This is fancy realtor lingo for the process in which we assess the value of the property based on recent comparable sales
I do not include BC assessments at all in the property value equation, but I do reference it in my report.
Never assume your home is worth more or less than a BC assessment. This is a moving target.
Did you know if you feel your assessment is too low, you can argue it?
I had a listing where the government incorrectly assessed the value of the property by hundreds of thousands of dollars
This hurt the listing because it was a brand new house and buyers very hesitant with a listing price being substantially above the BC assessment
I was able to help the seller argue the true value of his newly built home, and together, we corrected the assessed value.
You can also argue your assessed value if you feel it’s too high.
This is important if you’re planning on staying at the property for a long period of time because your annual property taxes are based on the BC Assessed value
A small group of people are responsible for calculating the values of a ridiculous amount of properties, so how good can they possibly be with the limited time they have?
So why are BC assessments so far off sometimes?
The BC assessment appraiser will not visit the physical property when determining the value
Also, the BC assessment does not take into consideration current market conditions like inventory levels and whether it is a buyer’s or a seller’s market
At the end of the day, if you are curious, just call me or your favourite local realtor.
That’s what we are here for!
Watch and subscribe for more!
👉 Learn more, call Jessi at 604 716 6474, email jessi@jessijohnson.ca or schedule a time to chat here: https://calendly.com/jessirealestate
Don’t forget to pick up a copy of my best-selling book on Amazon, Rockstar Real Estate Investing if you haven’t yet and we are here for your questions at any time.
Pick up my book here: https://amzn.to/3uX43SA Want to chat?
Book time to chat with Jessi here: https://calendly.com/jessirealestate ——————————————————————————————————————-
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