BC  House Assessment and Your Home Market Value

It’s that time of year again, when the tax man sends out your home tax assessment.

Today I explain why your tax assessment has absolutely no reflection on the market value of your home. Below is a story about 3 different properties that were built by a builder 40 years ago. Each house was built on the same size lot and each shared the same square footage.

Though identical in lot size and square footage, these homes will have a completely different market value when the owners go to sell.

House number 1: This house has been owned by the same people for the last 40 years and is immaculate. They have taken great care but it is still in its original state.  The home still has the green shag carpet with brown walls etc. – These homes are sometimes called “Saturday Night Fever” houses. House number 2:  This home was bought by a young couple 3 years ago and they put over $250,000 in home improvements. They also put in a new suite downstairs that helps pay their mortgage. They have beautiful gleaming hardwood floors, a fabulous open-concept, they have taken out  walls and put in a new and modern kitchen etc. The place  looks amazing. House number 3:  Finally, this house has been rented a great deal of the time for the last 40 years and was also a former grow op.

Though all of these homes have been assessed at the same value, they will have a truly different market value for the very reasons mentioned. All of these things will affect the value of the home but the taxman has no idea about any of these things. He has no idea house number 2 was completely remodeled because they didn’t need to take out any permits.

House number 3, that even though it shows as a grow-up, I bet the taxman it not going to give you a credit and give you a break on your taxes that you owe.

The taxman is not going to give any tax credit for a house that was formerly a grow-op.

House number 1 would probably be the one right in the middle. It would probably be the one that closest represents your assessed value.

BC Assessment Value and Market Value

To learn more about this give us a call or email Jamie@jamiehooper.com

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