If you haven't yet received your 2020 Property Assessment, you will shortly. Whether buying, selling, or just home-owning, here are 5 important things to know:
(1) 2020 marks only the fifth time since B.C. Assessment’s inception in 1974 — and the first time in 20 years — that the province’s assessed values saw an overall decline. (B.C.’s overall assessment values also decreased in 2000, 1999, 1987 and 1983).
(2) Just because your Assessment went down, it doesn’t necessarily mean your TAXES will decrease. That’s because every municipality still needs to raise enough revenue to fund its annual operations. Here’s a great article to read: https://bit.ly/36oXJp3
(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 2020 Assessment notice is BCA’s estimate of a property’s market value as of July 1, 2019, which is 6 month’s prior to you receiving your assessment. (and the reason why current Market Value can be different – as it reflects a more current state of the market).
(5) Good news – the Home Owner Grant threshold has been set lower! This year: $1.525M and last year: $1.65 M.
Here are the median price changes in North Vancouver, so you can see how your Assessment may not necessarily equal true, current market value:
July 2018 - July 2019 Dec 2018 – Dec 2019
(Assessment period) (Year over year data)
Detached down 9% down 7%
Attached down 9% down 2%
Apartments down 9% up 9.5%
Bonus #2 –
Here is a service that you may find helpful – available now until March, where you can view details on a single property, compare neighbouring properties, and compare sales information. http://evaluebc.bcassessment.ca/