The real estate market is the single biggest influence on market values. Market forces vary from year to year and from property to property so the value that shows on your property assessment should not be taken as the true market value of your home.
The market value on an assessment notice may differ from that shown on a bank mortgage appraisal because BC Assessment’s appraisal reflects the value as of July 1 of the previous year, while a private appraisal can be done at any time. Also, it’s very rare that a property inspector from the BC Assessment Authority will actually visit your home for an inspection whereas with bank appraisals, it’s common practice for an appraiser to come into the property to assist in determining it’s market value.
Market value from a bank appraiser’s standpoint relies on many different aspects, but one premise is market value is determined primarily on what someone is prepared to pay for it (and what a Vendor is willing to accept).
When reviewing the annual property assessment notice, property owners should check that it reasonably estimates what the property would have sold for on July 1 of the preceding year, and that it relates to the value of other properties in the neighbourhood. To get a good up-front estimate of your property’s value, a great first step is to contact your Real Estate Agent to give you a market analysis.