When that property tax assessment notice arrives you might be wondering how close the number is to market value. It’s easy to assume that the assessed value is a true reflection of our home's market worth. But we took a deep dive into hundreds of our records and found the assessment number and the market value don’t match.
The Truth About Tax Assessments
Cal's research revealed some significant discrepancies:
Under-Assessed Properties: A surprising 37% of the reviewed listings sold for less than their assessed value. In some cases, homes went for a staggering $200,000 to $300,000 less than what the assessment authority believed they were worth.
Over-Assessed Properties: On the flip side, some properties sold for $200,000 to $300,000 more than their assessed value. This shows just how wide the margin of error can be.
Why the Discrepancy?
It's a huge undertaking for assessment authorities to value every single property in an entire province each year. They rely on tools like Google Earth and street view pictures. While these tools are helpful, they simply can't capture the full picture.
Think about it: these methods don't account for that brand-new kitchen you just installed, the upgraded bathrooms, or even necessary maintenance that hasn't been done that might increase the market value of a home. Conversely, they also don't factor in outdated interiors, like those shag carpets.
Get the Real Picture
So, if your tax assessment isn't always accurate, how do you get a true understanding of your home's market value?
Consulting an experienced and qualified real estate agent is the best way to understand the current market value of your home. Unlike generalized assessments, a local agent can provide a market valuation that takes into account all the unique features of your home, recent comparable sales in your specific neighbourhood, and current market conditions. This detailed analysis gives you a far more accurate and actionable valuation.
Don't leave money on the table or misjudge your home's worth. If you're curious about the actual value of your property, reach out to an expert.
