The start of a new year often brings with it a flurry of activity and anticipation, and for property owners in British Columbia, it signals an important event: the release of the latest property assessments by BC Assessment. Well, it’s December 30th, and the latest assessments are now available, providing a fresh perspective on the value of properties across the province as of a specific date.

What is BC Assessment?

BC Assessment is a provincial Crown corporation that develops and maintains real property assessments throughout British Columbia. These assessments play a pivotal role in the real estate landscape, as they are used by municipalities to determine property taxes.

The Significance of the Assessed Values

The assessed value of your property is essentially an estimate of its market value as of July 1 of the previous year. This date is crucial; it means that the current assessments reflect the market conditions as they were on July 1, 2023. This value may differ from the current market value, as real estate markets fluctuate significantly over time and this year, despite the influence of higher borrowing costs, is no different.

How Are Assessments Determined?

BC Assessment's team of professional appraisers analyzes a multitude of factors to determine BC’s property values. These factors include location, size, age, and the property's condition, along with sale prices of similar properties in the area.

What This Means for Property Owners

For property owners, these assessments are more than just numbers. They provide insight into how their property value has changed over the past year and how it compares to others in their area. It's important to note that an increase in your property's assessed value doesn't directly translate to a proportional increase in property taxes. The tax rates are set by your local municipality and can vary.

How does an assessment from BC Assessment compare to a Comparative Market Analysis (CMA) a Real Estate Agent provides?

This year, the Hill and Harbour Real Estate Group completed almost 50 CMAs for homeowners across the lower mainland, as people were curious about the value of their home, compared to the real estate market. The evaluation a REALTOR provides in a CMA typically differs from an assessment from BC Assessment in a few ways:

1. The evaluation is a snapshot in time within the current market, not an historic evaluation based on 6-months ago

2. While the purpose of BC Assessment values is to help determine your share of property taxes you’ll need to pay, our CMAs help you determine the range your property could sell for within the current real estate market

3. While BC Assessment, and our team, may use similar criteria when evaluating the value of your home, the relationship we have with homeowners is different than that of the “tax man,” and therefore, we are typically more welcomed in to a home. This enables us to evaluate the upgrades, improvements, and condition of your home, and, as a result, we are better able to narrow down an appropriate sale value compared to other properties on the market.

BC Assessment Review and Appeal Process

If you believe that your assessment does not accurately reflect your property's value as of July 1, 2023, BC Assessment offers a process for review and appeal. Property owners have until January 31 to file an appeal, making it crucial to review your assessment as soon as possible. Keep in mind, challenging your assessment may impact your share of municipal property taxes.

In Summary

The release of BC Assessment's property assessments is a significant event for property owners in British Columbia. Understanding the meaning behind these values and the date they are current as of helps in making informed decisions about your property.

However, because they’re an historic assessment of the value of your home from the previous July, making decisions about any home buying / selling plans may be cutting your dreams short. If you would like an objective evaluation of your home today, to understand what you could sell your home for in the current market, please contact us and we would be more than happy to learn about your home, and prepare a personalized home evaluation for you.