BC ASSESSMENT VALUE vs MARKET VALUE… are they the same?
Short answer is NO.
Many people assume their property can be listed for above assessed value.
I just did a full analysis of Active and Sold properties over the past year on Quadra.
In my list I see that 1/3 of properties are priced below the assessed value (sold and active).
About 37% of the sold properties in the past 12 months sold for below the current assessed value.
You will not find a pattern by looking at assessed values. When real estate agents are taught how to price properties they are told to not use assessed values for good reason.
In the past year we have had properties sell for up to $575,000 below the assessed value. There is one currently listed for $334,000 below assessed.
We have also had properties sell for up to $575,000 above assessed value.
The most important thing to remember is that (sing along with me! ) “A Property Is Only Worth What a Buyer is Willing To Pay For It“. Your real estate professional who has their boots on the ground and is actively speaking to buyers in your market will know what people are looking for, and what they are willing to pay. Pricing is so important! In a market with such limited inventory properties should hopefully sell fairly quickly. On Quadra, in my experience, most buyers don’t want to spend more than $1 million. It seems to be about a 50/50 split between people looking for views and people looking for private acreages/farms. Most want more than 2 bedrooms and 1 bathroom. Most would love zoning that allows for a second dwelling/cabin. If your property has been on the market for a year, with no price reductions…maybe it’s not priced right. Or is there some other issue?
I just looked at assessed values for 2 properties on the same street on Quadra. One has more land, a larger house and about the same age home, in good condition, same view, AND it’s waterfront AND has a second dwelling on the water while the other one isn’t waterfront. And this larger waterfront home has a lower assessed value than the other non-waterfront one. Makes me scratch my head. So just don’t look at it when thinking about market value or you might go crazy. And let’s see if those assessed values go down this July since the market has quietened down. Do you think they will go down? Let’s see……