What you need to know about BC property assessments when selling your home
As you crunch through the early January snow on your way to the mailbox and swing open the little door, you see the envelope from BC Assessments. Your BC property assessment is in, and the value of your home has increased.
Then comes the flurry of questions—how accurate is this number? Is now the right time to sell? Are my property taxes going to go up?
Here’s what you need to know about BC property assessments before you sell, as well as the assessment’s impact on property tax.
Should I list my home for its assessed value?
No. While you can list your home for its BC property assessment value, you’re likely going to earn less than if you worked with your real estate professional to determine the listing price. The BC assessment doesn’t require a physical walkthrough of your home and doesn’t account for improvements or renovations made without a permit. That means the beautiful new flooring and designer kitchen you installed are not reflected in the value.
BC Assessments are also weighted based on what is considered normal for the specific area. For example, if you live in a rural area with fewer rentals, adding a new rental suite will add less to your assessed property value than the same addition in an area with many rental suites.
That’s where your real estate agent comes in. When you work with a real estate professional, we run a comprehensive market analysis to find a listing price that reflects the true market value of your property.
As one of Royal LePage Kelowna’s top agents, I have years of experience analyzing trends in the real estate market and in your own neighbourhood. I’m here to help you with every aspect of the buying and selling journey and to help you get the best deal possible.
How accurate is BC Assessment?
To determine the assessed market value of your home, BC Assessment’s appraisers look at:
Quality and type of home
Real age, which is when the home was originally built
Effective age, which is the date of the last total renovation (if applicable)
Number of bathrooms, bedrooms, the basement, any suites, etc.
Improvements based on the area standards, such as that new rental suite
My BC property assessment is too high. What should I do?
The assessed value of your home directly impacts your annual property taxes. While you can’t appeal your property taxes, you can appeal your BC property assessment. If you think your home has been over or undervalued by BC Assessment, you have until Jan. 31 to request a review with the Property Assessment Review Panel.
How much are property taxes?
Most municipalities set the annual property tax rate in the spring. The amount of property tax you pay depends on the BC property assessment value, the location of your property, its classification, and the cost of services in the community.
How do I find out my property taxes in BC?
Once you receive your assessment and the City decides on property tax rates for 2023, you can calculate your property tax by multiplying your assessed value by your property tax rate.
The City of Kelowna has an easy-to-use property tax estimator on its website.
Which city has the highest property taxes in BC?
While Kelowna, Victoria, and Abbotsford have some of the highest property tax rates in the province, the actual amount of taxes paid varies greatly based on the average value of the home. That means a homeowner in Vancouver may end up paying more in property taxes than a homeowner with a similar property in Kelowna, as the market value is generally higher in the Lower Mainland.
Are you ready to sell your home? I will help you to get the best value possible for your home. Contact me today online or call me at 778-215-5671 to get started.