The Good and Bad News Behind Property Valuations
It’s that dreaded time of year again – time for taxes and assessed property valuations.
The double-edged sword known as property assessment values is here again. Every January, as reliable as broken New Year’s resolutions, the BC Assessment Authority issues its “Assessment Roll,” which advises homeowners on their property valuations.
The report is one of those good news/bad news situations, depending on where you are in your current property lifecycle. Sellers are hoping for the highest valuation possible while homeowners preparing for this year’s tax bill are praying for the lowest.
Assessed value is based on the value of your property in July 2011. While 2011 seems like a lifetime ago, the market was in a frenzy. Sales were hot and some properties saw multiple over-list-price offers. Rumours swirled about offshore investors with briefcases full of cash driving up house values. The buying frenzy in Vancouver, Richmond and West Vancouver drove others out to buy in Burnaby, Coquitlam and New Westminster, which drove values up in those areas. The assessment roll reflects those market changes.
Richmond, West Vancouver and Burnaby were most notable for assessment increases. Notables include Vancouver and Richmond, which saw increases between five and 30 per cent in single-family detached homes. In the ‘burbs, Queens Park, Kensington and Westwood Plateau saw the highest increases. The biggest decreases (-7 per cent) were in resort areas hit hard with slow sales -- Whistler and Sun Peaks.
Appraisers also consider size, age, quality, view and location. That would account for why some physical homes decreased in value while the portion of land valuation inceased. So, while some lots may be the same size, the age of the home and even its orientation on the lot could affect the overall value.
Your assessment is not necessarily an effective indicator of the value of your home in the current market. Remember, it’s a valuation based on sales from more than six months ago. Sales slid, and when sales soften, there is a tendency for prices to soften as well. The assessment team has not been in your home and may not be aware of your amazing, state-of-the-art professional chef’s kitchen or walk-out basement to the grotto pool. It’s really a way to decide how to distribute the tax burden throughout B.C.
If you disagree with your assessment, you have some opportunity to seek redress. The BC Assessment website provides some options, beginning with a phone call. The next step is to file a notice of complaint. But don’t dally! The period for filing your notice of complaint is a meager window of appeal, expiring on Jan. 31, 2012.
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