We're excted to bring this fantastic family home to the market !

4455 Nottingham Road, offered at $2,215,000

OK, so we promise this is the last post about Tax Assessments- but as we are still getting calls and emails, we thought we'd outline how to appeal, if you want to go down that road:

Since you’ve opened the envelope from your Municipality, you’re likely in good company with others who have experienced up to a 35% increase over last year’s Assessed Value.

If you don’t think the assessment is fair, or believe the new value is out of line with your neighbour’s house, you can ask for a reconsideration. It will take some time & a nominal fee.   Deadline to appeal is January 31^st.

The process itself is relatively simple – and you will have five minutes to appear before a panel of volunteers, who will generally deliberate for another 5 minutes – at the most.

Should you bother?   We’ve helped clients do it before – and we can tell you that the system isn’t perfect.  However, we have heard that about half of the appeals provide some reduction in assessed value, so it may be worth the effort.  If You wish to appeal should know that you need to make a really good case for your argument. 

Start by looking up your assessments on BCA's e-valueBC website.  Details include a photo, a property description (land and buildings), the total assessed value, the previous year’s value, the legal description, and property ID.  If property details are incorrect, you will be directed to complete and submit an e-valueBC Data Validation Form.

Don’t just compare your online numbers to your neighbors - walk around your neighborhood & take photos.  You are welcome to call us for some information on neighborhood sales so that we can help you state your case.  info@thebottoteam.com.

Will my taxes rise by the amount of the increase?  No. While typically we should steel ourselves for a heftier bill, some taxes may actually fall if the increase is below the average for the community, OR if the Municipal Budget stays the same as the previous year (Laughing yet??).

As always, we are here to help. 

Call (604) 984-7253 or email (info@thebottoteam.com) anytime.  

Property owners received their 2017 assessment notices the first week of January.

In the Lower Mainland, increases of 30 to 50 per cent are typical for detached homes in Vancouver, the North Shore, Squamish, Burnaby, Tri-Cities, Richmond, and Surrey. Property owners with a significant increase received a warning assessment in early December 2016.

Commercial and industrial properties will likely see increases in the 15-40% range, according to Jason Grant, assessor, Greater Vancouver Region.

The 2017 Assessment Notice is BC Assessment’s (BCA) estimate of a property’s value as of July 1, 2016, and for new construction or substantially renovated homes, the physical condition as of October 31, 2016.

BCA is a publicly owned provincial Crown corporation responsible for determining and reporting property value estimates for the 2,017,364 properties in its database. This is an increase of 1% from 2016. BCA started producing the assessment roll in 1974.

BCA’s assessment and a REALTOR’S® assessment. Why the difference?

BCA’s assessment and the market value determined by a Realtor may be different. Why?

Both BCA assessors and Realtors calculate market value by analyzing sales of comparable homes within a local market, and look at factors that affect value such as size of home, view, location such as on a busy or quiet street, number of bedrooms, construction quality, floor level, and garage or parking stalls.

Where every lot and every home on a street are typically the same, both BCA’s value and a Realtor’s value will be similar during stable market conditions.

Differences occur in neighbourhoods where lots have been rezoned or are different shapes and sizes, where architecture and views are unique, and where owners have made changes that BCA hasn’t yet taken into account.

Property tax

Property taxation is determined by local and provincial taxing authorities after determining their budget needs and calculating property tax rates based on the assessment roll for their jurisdiction.

Municipalities determine tax rates for each property class in the spring once the assessment roll is finalized. Changes in assessment over the year don’t automatically translate into the same percentage changes in property taxes for any particular class of property or for any individual property.

Questions?  Contact BC Assessment.

Home Owner Grant coverage declining

The Home Owner Grant is a provincial grant which reduces the amount of property tax an owner pays. To qualify you must be the registered owner, you must occupy the home as your principal residence, you must be a Canadian citizen or permanent resident of Canada, and you must live in BC.

The grant is available to owners of properties assessed at up to $1.2 million.

It’s reduced by $5 for each $1,000 of assessed value over $1,200,000. It’s eliminated on homes assessed at $1,314,000 or $1,354,000 in northern and rural areas.

Local governments are asking the provincial government to increase the grant thresholds because the value of so many properties in the Lower Mainland has risen and many owners are losing their grants because of the increased value of their homes.

When you view your assessment

Property owners can look up their assessments on BCA's e-valueBC website.

Details include a photo, a property description (land and buildings), the total assessed value, the previous year’s value, the legal description, and property ID.

If property details are incorrect, property owners are directed to complete and submit an e-valueBC Data Validation Form.

Property owners can also compare neighbouring properties and sample sold properties to decide whether their property has been correctly assessed.

Deadline to appeal assessment is February 1, 2017

Property owners who disagree with their assessment should do homework by:

• comparing their assessment with neighbouring properties; and
• contacting BCA at 1-866-valueBC (1-866-825-8322) and talking to staff who can make adjustments if there's an obvious error, for example if BCA included a complete renovation when there was merely a spruce-up.

Property owners who decide to appeal their assessment should review information on the Property Assessment Appeal Board website on how to prepare for an appeal and then complete a Notice of Complaint (Appeal) Form. (Step 7)

The deadline to file an appeal is February 1, 2017.

Each year less than 1% of BC property owners appeal their assessments.

Note: you can’t appeal your taxes. You can only appeal your assessment.

For information about BC Assessment and to access e-valueBC visit: www.bcassessment.ca or phone 1-866-valueBC (1-866-825-8322).

Sample Property Value Changes in our neighbourhoods

The District of Squamish saw the greatest increase in the Greater Vancouver assessment region with a 47% increase for a detached home. North Vancouver’s Lynn Valley and Burnaby’s Buckingham neighbourhoods were close behind, with detached homes increasing 46%. 

 

Additional examples may be found in these BCA news releases for Greater Vancouver and Fraser Valley assessment regions.

Did you know?

• Total value of real estate on the 2017 BC assessment roll is $1.67 trillion, an increase of 25% from 2016.
• In BC, 88% of all properties are classified with some residential component (class 1), equating to $1.29 trillion.
• Changes in property assessment reflect movement in the local real estate market and can vary greatly from property to property.
• Real estate sales determine a property’s value which is reported annually by BCA. 
• BCA’s assessment roll provides the foundation for local and provincial taxing authorities to raise $7 billion in property taxes each year, which funds community services including the school system. 

Increases to your Property Assessment - a rousing topic every January, and this year, not really a surprise that 2017 Assessments are considerably higher than they were in 2016.   If you haven't yet received your 2017 Property Assessment, you will shortly.  Whether buying, selling, or just home-owning, here are 5 important things to know:

(1) Property Assessments do NOT necessarily equal market value

(2) Just because your Assessment went up, doesn’t mean your TAXES will increase.  And, if your taxes increase, it’s not just because your property assessment increased!

(3) BC Assessment uses a mass appraisal system, which calculates property value by evaluating prices for homes sold in each neighborhood and then applies the information to arrive at an assessed value.  This information is typically obtained from MLS sales, NOT by visiting the properties in question.  BC Assessment has approximately 650 full-time staff positions in 17 offices throughout the province.  They can’t possibly visit every residence.

(4) The most important factor is the TIME at which a property is assessed.  A 2017 assessment notice is BCA’s estimate of a property’s market value as of July 1, 2016, which is 6 month’s prior to you receiving your assessment.  (and the reason why a REALTOR®’s market value can be different – as it reflects the current state of the market).

(5) BCA’s Market value assessment is for tax purposes only.  It is widely considered to be the fairest system for distributing the property tax burden.  As the real estate market can change very quickly, depending on an historical assessment (July assessment for next year’s tax purposes) to be an accurate indicator of market value can be erroneous.

Bonus #1-

Here are the median price increases in North Vancouver :

                   July 2015 - July 2016                         Dec 2015 – Dec 2016

                   (Assessment period)                          (Year over year data)

Detached              22% ↑                                                  7% ↑

Attached              25% ↑                                                   6% ↑

Apartments         19% ↑                                                 26%  ↑

Bonus #2 –

Here is a service that you may find helpful – available each New Year until March, where you can view details on a single property, compare neighbouring properties, and compare sales information. http://evaluebc.bcassessment.ca/

Effective on transactions entered into on October 1, 2016, or later, this tax is modeled closely on the provincial “Property Transfer Tax Act”.  The PTT Law adopts the provincial rate of 1% on the first $200,000 of fair market value (purchase price), 2% of the fair market value that exceeds $200,000, but does not exceed $2Million, and 3% of the remaining fair market value.

The PTT Law adopts the same exemptions as are offered off-reserve, including exemptions for first time home buyers, and the recently added exemption on new construction (purchases under $750,000 are exempt).

It is important to note that there are transitional rules in place.  For example, for those of you who purchased in the Spring at “Seymour Village” above Ravenwoods – which completes in 2017:  There is no PTT on new residential property (a “pre-sale”) where the pre-sale agreement was entered into within one year of the PTT Law coming into force and where the home is finished and the sale completes within two years of the PTT Law coming into force.  There is also no PTT on the sale of a residential property where the agreement of sale was executed before the PTT Law came into force and the sale completes within six months of the PTT Law coming into force.

Read the full overview HERE.

Questions ?  Call us - we are here to help!

With September almost to a close, there may be some rainy days ahead - and here is a project for "one of those rainy days" !

Warranties, Manuals and Receipts

These documents provide you with a proof of purchase date and determine service and parts guaranteed. In addition, the manuals usually provide care information so you can help ensure your household appliances are being properly maintained. You should keep your warranties, manuals and receipts for these items for as long as you own the appliances.

Home Inventory

If you were ever to lose any of your possessions due to fire, burglary, or vandalism, having a home inventory can help you avoid a lot of heartache and make it easier when filing an insurance claim.

Start with a sheet a paper for each room in the house. Go around the room and list every item. Don’t forget the attic, basement or other storage places. For each item, write the original cost, purchase date, replacement cost, model number, brand name, where purchased, and a general description.  Pop these into an Excel spreadsheet  or use Google Spreadsheets (it's free!) so that you have an electronic copy.

Besides a written inventory, take photos or video of each room for visual documentation. It is also a good idea to arrange valuable collections, silver, jewelry, etc. and take close up photos.

Keep a copy in your home & electronic files (and perhaps one at the office, too!) and the originals in a fireproof safe or safe deposit box. Make sure you update your home inventory photos and list at least once a year.

Organizing your home files may take a considerable amount of time initially, but it will definitely be time well spent in the event you need the documents later on.

Home buyer competition is intense in today’s housing market, and multiple-offer situations have become commonplace.

These trends have everyone wondering who is buying homes in Metro Vancouver today?1 Are millenials being priced out? Are retirees downsizing? Are investors driving the market?

To shed some light on these questions, the Real Estate Board sends a home buyer demographic survey each month to members who represented a buyer in a sale over the previous 30-day period.

Between 150 and 200 REALTORS® regularly complete the survey. Analysis is based on an average of the last 12 months of responses.

“This feedback, while not scientific, gives us a deeper understanding of the trends in the marketplace,” says Dan Morrison, Board president. “We’ve conducted this poll over several years and some consistent themes have emerged.”

Home buyer trends (2015 - 2016 averages)

Since 2015, first-time home buyers have, on average, accounted for 32 per cent of Metro Vancouver home sales, according to the survey, and 21 per cent of home buyers are people moving from one property to another similar property in the region.

Speculation of real estate investor activity is much discussed in social and traditional media today. Our survey finds that nearly one in five homes sold to real estate investors last year, with domestic investors (15 per cent) making up the largest portion of these purchases. Foreign investors make up less than five per cent of all property sales in the region.

Home buyer demographic

Young families with children are active in today’s market. This group accounts for 34 per cent of all activity, and young couples with no children make up 18.5 per cent of all activity.

Retirees (eight per cent) and empty nesters (seven per cent) both represented less than 10 per cent of Metro Vancouver home sales according to the survey.

Home buyer residency

The clear majority of buyers, around 82 per cent, are already living in Metro Vancouver when they make their purchase. The next largest group of buyers migrate from other areas in BC and Canada. Roughly eight per cent of home buyers come from outside Canada, according to the survey.

Financing trends

On average, just over 60 per cent of buyers pay for their homes using traditional mortgages with at least a 25 per cent down payment. Cash purchases and high ratio mortgages make up the remaining 40 per cent in nearly equal proportions.

“While the volume of home sales has increased in recent months, the characteristics of people buying in our market remains relatively constant according to this monthly research,” Morrison says.

Footnotes

1. Areas covered by the REBGV include: Whistler, Sunshine Coast, Squamish, West Vancouver, North Vancouver, Vancouver, Burnaby, New Westminster, Richmond, Port Moody, Port Coquitlam, Coquitlam, Pitt Meadows, Maple Ridge, and South Delta. 
2. Data collected from REBGV Market Survey, March 2015 - February 2016
3. Article courtesy of the Real Estate Board of Greater Vancouver

Spring is a season of renewal. Birds are singing and the flowers are beginning to burst into bloom. The days are getting longer and people are getting outdoors again. So not surprisingly, real estate activity begins to swing into high gear. The weather is more cooperative and families are looking to move during the summer break.

If you are considering putting your home on the market, now's a good time to do some spring maintenance to make sure your home is in tip-top shape.  Even if you aren't planning to sell your home, you should still add these tasks to your list to help preserve your home's value and help avoid major repairs later on.

Walk Around the Outside

Check for any damage caused by winter's cold weather. Look for those sagging or loose gutters, window frames or siding. Is your roof missing any shingles, or is there any water damage under the eaves? Promptly schedule repairs for those items you can't do yourself.

Over the fall and winter, leaves, mud and debris may have accumulated in your gutters. Check your gutters for clogging and damage and schedule an appointment for cleaning.

Walk around your yard as if you were a first-time visitor. What impression does your home make? Be sure to clear away fallen branches and leaves. Loosen the soil around perennials, plant annuals or a vegetable garden. Prune shrubs and trees.

If your water supply has been off for the winter, turn it back on. Test your automatic sprinkler system or connect your water hose and check for cracks and leaks. Replace old washers or sprinkler heads.

Don't forget the backyard! Is it time to condition your deck? Be sure to hammer in any loose nails, or replace them with galvanized deck screws. Replace any broken boards or rails. Consider renting a power washer to clean dirt and mildew from the wood, and then apply an all-weather sealer or stain. Then dust off that patio furniture you kept protected over the winter.

Repair any broken fence boards and paint or seal them as needed. Clean the pool if it has been covered all winter. Wash windows, screens and windowsills; repair any winter damage.          

Take A Tour Inside

Start making a list of things to do in each room. Then dive in. Dust walls and ceilings to remove cobwebs and wash any grimy areas. Wash window curtains or remove drapes for dry cleaning. Deep clean rugs and carpets. Dust and polish wood or laminate floors.

Clean fan blades using mild soapy water. Check the A/C or Heat Pump  unit for debris and obstructions; vacuum the main condenser coil on top of the unit. Check the operating condition of the furnace; remove and change filters.

Make sure all exhaust fans and vents are clean and clear. Don't forget to remove the lint buildup from the clothes dryer vent.

One often-overlooked area is the fireplace. Be sure to sweep ashes carefully into your fireplace's ash pit or into a dustpan.

Look around for clutter.  Are there items you don't use any longer? If you are planning on moving, what items will you not need? Consider having a garage sale and then either donate or trash the remaining items.

And lastly, don't forget to replace batteries in smoke and carbon monoxide detectors.  Did you change them when you changed your clock for daylight savings time ? If not, change them now !

Although performing these spring chores may not be something you really want to do, they go a long way in maintaining and even enhancing the attractiveness, quality and VALUE of your home.  Happy Spring!