Assessed Value vs Market Value in BC: Understanding the Difference 

Determining the true value of your home can be confusing. You likely receive a property assessment notice from BC Assessment each year with an assessed value. But is this the same as the market value – what buyers are actually willing to pay?

The differences between assessed value and market value are important to understand, especially if you plan to sell your home. This guide will explain how each value is determined in British Columbia and why there is often a discrepancy between the two.

Keep Reading:

  1. What Happens When a Home Appraisal Comes in Low?
  2. Asking Price vs Selling Price: Determining Fair Market Value
  3. Closing Costs of Buying a Home in BC – A Detailed List
  4. How to Know If the Title of the House is in My Name in BC
  5. Tips for Selling Your Home – Guide for Vancouver

How Assessed Value is Calculated

The BC Assessment provides property owners with an estimated value of their home each year. This assessed value is used to calculate property taxes owed to local and provincial governments.

As it’s not feasible for appraisers to visit every home, assessed values are calculated based on:

So the assessed value is based on limited information from 6+ months ago. It does not reflect renovations, interior upgrades, or current real estate trends.

Why BC Assessment Value Differs from Market Value Of Your Home

Market value is what a buyer would pay for your home today, based on current market conditions. This is influenced by things like:

  • Desirability of location
  • Interior finishes and layout
  • Proximity to transit and shops
  • Property age and upgrades
  • Outdoor space and parking
  • Local inventory and buyer demand

As the real estate market rapidly changes, assessed value can lag far behind. It’s set months earlier and doesn’t account for factors obvious during a property tour. Don’t rely on assessed value to know your home’s worth.

What Impacts Your Home’s Actual Market Value

Market value is what a ready and willing buyer will pay for your home in its current condition. Real estate agents determine this number by thoroughly touring and assessing all aspects of the property.

Factors that influence market value include:

So market value provides a complete, real-time snapshot of what your home could sell for.

Key Differences Between Assessed and Market Value

There are a few key reasons assessed value often does not equal market value:

  • Assessors don’t see the home in person like real estate agents do
  • Market value accounts for many more factors
  • Assessed values are 6+ months out of date from market values

Replacement Value for Insurance Purposes

Replacement value is used for homeowners insurance. It’s the full cost to reconstruct your home from scratch in the event of a total loss. To determine this, insurers consider:

  • Building materials, finishes
  • Number of stories, bedrooms, baths
  • Square footage
  • Labor and permit costs
  • Meeting updated building codes

Replacement value is higher than the building value on your assessment. Your home can’t be replaced with another 40 year old structure! Review your policy yearly and update for renovations.

Determining Your Home’s True Value

Don’t rely solely on your property assessment to know what your home is worth. To get an accurate estimate of its market value, consult a local real estate professional. They will provide a detailed valuation after touring your home and reviewing recent area sales.

Did you know that 74% of BC homeowners say their assessed value does not match what their home would sell for, according to a survey by Richard Morrison?

Getting an Accurate Market Value Assessment

Don’t stress if your assessed value decreases – it may not impact what buyers will pay. To get a true gauge of your home’s market value, have a real estate agent tour your property. They’ll assess its current condition and comps to provide an up-to-date estimate.

A proper market valuation ensures you:

  • Price your home correctly when selling
  • Don’t overpay if buying
  • Get the right insurance coverage

Benefits of an appraisal

An appraisal to determine the market value of a home can provide several benefits. Firstly, it helps differentiate between the market value and the assessed value of a property. While the assessed value is used by tax authorities to determine property taxes, market value is the price that buyers are willing to pay to purchase the property. This information is valuable to home sellers as it helps them set a realistic asking price.

Additionally, a current market appraisal provides an accurate reflection of the housing market and its trends. This assists home sellers in making informed decisions about the listing price and potential negotiations. Conversely, buyers can also benefit from an appraisal as it ensures they are not overpaying for a property.

Furthermore, an appraisal can also provide vital information about the home, such as the existence of any potential issues, such as large trees with roots that may impact the property. Overall, a market appraisal offers a more comprehensive and accurate understanding of a home’s value, taking into account factors beyond just the municipal and provincial property assessments. 

FAQs:

Q: What is the difference between assessed value and market value?

A: The assessed value of a property is the value assigned to it by the BC Assessment Authority for property tax purposes. It is used by tax authorities to determine property taxes. The market value, on the other hand, is the amount that a buyer is willing to pay for the property in the current real estate market.

Q: How does BC Assessment determine the assessed value of a property?

A: BC Assessment appraisers take into account various factors, including the property’s characteristics, location, recent sales of similar properties, and other market data, to determine the assessed value of a property.

Q: Why is there sometimes a discrepancy between the assessed value and the market value of a property?

A: The assessed value is determined based on the information available to BC Assessment, while the market value is influenced by factors such as buyer demand, changes in the real estate market, and individual negotiations between buyers and sellers. As a result, it is not uncommon for there to be a difference between the assessed value and the market value of a property.

Q: How is the market value of a property determined?

A: The market value of a property is determined by the buyer’s willingness to pay to purchase the property. It takes into account factors such as location, condition, size, and other features that may affect the value in the real estate market.

Q: Can I use the assessed value of my home as an indication of its market value?

A: While the assessed value can provide some insight into the value of your home, it is important to recognize that it is not the same as the market value. The market value is determined by what buyers are willing to pay, while the assessed value is used for property tax purposes.

Q: How often does BC Assessment assess properties?

A: BC Assessment assesses properties annually. The assessed value is based on the value as of July 1 of the previous year.

Q: What role does BC Assessment play in determining property taxes?

A: BC Assessment provides the assessed value of properties to tax authorities, who then use this information to calculate property taxes. The assessed value is one of the factors used in the property tax calculation formula.

Q: Does the assessed value of a property include things like carports or other structures?

A: Yes, the assessed value of a property includes all structures and improvements on the land, including carports and other additions.

Q: Are there any other factors besides the assessed value that affect property taxes?

A: Yes, property taxes are also influenced by factors such as the municipal tax rate, special levies, and any provincial property tax credits or exemptions that may apply.

Q: Can a realtor help me determine the market value of my home?

A: Yes, a realtor can provide you with information about the current real estate market and help you determine the market value of your home based on recent sales of similar properties and other market data.

Sources:
https://info.bcassessment.ca/Services-products/Understanding-the-assessment-process/market-value-and-property-assessment
https://www.forbes.com/advisor/mortgages/assessed-value-vs-market-value/


Ready to turn your real estate dreams into reality? Contact Richard Morrison, Vancouver’s top realtor with 20+ years of experience. As a Medallion Club member and RE/MAX Hall of Fame award winning agent, he’s the expert you need on your side. Whether buying, selling, or investing, Richard’s personalized approach and deep market insights ensure a successful transaction. Reach out to Richard today at (778) 900-2235 and make your real estate journey seamless and rewarding.

Lets Have a Smart Conversation.

Let's Chat! Looking for a REALTOR© who can exceed your expectations? Look no further than Richard Morrison! His mission is to serve without limit & provide solutions that cater to your core needs.
* 20+ Years of Experience
* Medallion Member
* RE/MAX Hall of Fame

Your Privacy is important to us. View our Privacy & Data Collection Policy.

Latest Vancouver Listings

Active
$1,138,888
201 3368 MAIN ST, Vancouver Homes for sale, MLS® R2853255

Beds: 2Baths: 2Built in 19981205 sqft

24 seconds ago

Beds: 2Baths: 2Built in 19981205 sqft

Experience the essence of urban living in this unique townhouse situated...

$1,138,888

MLS®: R2853255 Magsen Realty Inc.

24 seconds ago

Active
$998,800
204 5955 IONA DR, Vancouver Condo for sale, MLS® R2853246

Beds: 2Baths: 2Built in 20061014 sqft

37 mins ago

Beds: 2Baths: 2Built in 20061014 sqft

Welcome to FOLIO by INTRACORP on UBC Campus! This 1014 SF 2 BED + DEN + 2...

$998,800

MLS®: R2853246 eXp Realty

37 mins ago

Active
$809,000
119 3133 RIVERWALK AVE, Vancouver Condo for sale, MLS® R2853234

Beds: 2Baths: 2Built in 2013911 sqft

38 mins ago

Beds: 2Baths: 2Built in 2013911 sqft

Welcome to this lovely 2 bedroom & den "townhome feeling" Polygon...

$809,000

MLS®: R2853234 Oakwyn Realty Encore

38 mins ago

Active
$639,000
218 3456 COMMERCIAL ST, Vancouver Condos for sale, MLS® R2853222

Bed: 1Bath: 1Built in 2015605 sqft

1 hour ago

Bed: 1Bath: 1Built in 2015605 sqft

Welcome to Mercer! Functional layout with a west facing balcony...

$639,000

MLS®: R2853222 Stilhavn Real Estate Servic...

1 hour ago

Active
$715,000
605 1008 CAMBIE ST, Vancouver Apartment for sale, MLS® R2853220

Bed: 1Bath: 1Built in 1998761 sqft

1 hour ago

Bed: 1Bath: 1Built in 1998761 sqft

This renovated owner occupied unit is located at the popular "Waterworks"...

$715,000

MLS®: R2853220 RE/MAX All Points Realty

1 hour ago

Active
$1,300,000
801 1428 W 6TH AVENUE BC, Vancouver, R2853219

Beds: 2Baths: 2Built in 20031115 sqft

1 hour ago

Beds: 2Baths: 2Built in 20031115 sqft

This Light-Filled 2 bed and 2 bath concrete home at the Siena of Portico...

$1,300,000

MLS®: R2853219 RE/MAX Crest Realty

1 hour ago

Active
$799,000
2205 3430 E KENT AVE SOUTH, Vancouver Apartments for sale, MLS® R2853215

Bed: 1Bath: 1Built in 2024530 sqft

2 hours ago

Bed: 1Bath: 1Built in 2024530 sqft

Paradigm by WesGroup! Deluxe brand new 1 bedroom plus den unit in the...

$799,000

MLS®: R2853215 RE/MAX Real Estate Services

2 hours ago

Active
$1,999,000
721 666 LEG IN BOOT SQUARE, Vancouver Apartments for sale, MLS® R2853213

Beds: 3Baths: 2Built in 19782723 sqft

2 hours ago

Beds: 3Baths: 2Built in 19782723 sqft

Remarkable one-of-a-kind gem nestled atop Vancouver’s skyline. Set against...

$1,999,000

MLS®: R2853213 Oakwyn Realty Ltd.

2 hours ago

Active
$1,443,900
105 4240 CAMBIE STREET BC, Vancouver, R2853210

Beds: 2Baths: 2Built in 2023970 sqft

2 hours ago

Beds: 2Baths: 2Built in 2023970 sqft

Introducing Savoy by Aria Pacific. Designed by local architectural firm -...

$1,443,900

MLS®: R2853210 Magnum Projects Ltd.

2 hours ago

Active
$579,500
2708 5665 BOUNDARY ROAD BC, Vancouver, R2853209

Bed: 1Bath: 1Built in 2016492 sqft

2 hours ago

Bed: 1Bath: 1Built in 2016492 sqft

Beautifully designed 27th floor 1 bedroom condo unit with amazing view...

$579,500

MLS®: R2853209 Sutton Group-West Coast Rea...

2 hours ago

Active
$648,000
1805 4815 ELDORADO MEWS, Vancouver Condos for sale, MLS® R2853208

Bed: 1Bath: 1Built in 2013551 sqft

2 hours ago

Bed: 1Bath: 1Built in 2013551 sqft

AMAZING UNOBSTRUCTED VIEWS with this 1 bedroom+Den,1 bath condo in the...

$648,000

MLS®: R2853208 eXp Realty

2 hours ago

Active
$899,999
102 2250 SE MARINE DR, Vancouver Apartments for sale, MLS® R2853206

Beds: 3Baths: 2Built in 19901218 sqft

2 hours ago

Beds: 3Baths: 2Built in 19901218 sqft

3 bedroom unit on SE marine dr in Vancouver, this private, ground floor,...

$899,999

MLS®: R2853206 City 2 City Real Estate Ser...

2 hours ago

Active
$629,000
602 111 W GEORGIA ST, Vancouver Apartments for sale, MLS® R2853192

Bed: 1Bath: 1Built in 2007632 sqft

2 hours ago

Bed: 1Bath: 1Built in 2007632 sqft

One of the brightest homes in the heart of the city's entertainment...

$629,000

MLS®: R2853192 Oakwyn Realty Ltd.

2 hours ago

Active
$949,900
7255 WEAVER CT, Vancouver Houses for sale, MLS® R2853189

Beds: 3Baths: 3Built in 19791816 sqft

2 hours ago

Beds: 3Baths: 3Built in 19791816 sqft

Nestled in the heart of Champlain Heights, this meticulously cared-for...

$949,900

MLS®: R2853189 Oakwyn Realty Ltd.

2 hours ago

Active
$828,888
2607 5665 BOUNDARY RD, Vancouver Condo for sale, MLS® R2853181

Beds: 2Baths: 2Built in 2016785 sqft

3 hours ago

Beds: 2Baths: 2Built in 2016785 sqft

THE SKY HIGH VIEWS YOU HAVE BEEN WAITING FOR! Welcome to WALL CENTRE...

$828,888

MLS®: R2853181 Rennie & Associates Rea...

3 hours ago

Active
$699,000
1803 888 HOMER ST, Vancouver Condos for sale, MLS® R2853172

Bed: 1Bath: 1Built in 2011534 sqft

3 hours ago

Bed: 1Bath: 1Built in 2011534 sqft

Discover urban elegance in this 1 bedroom, 1 bathroom+ patio corner suite...

$699,000

MLS®: R2853172 Engel & Volkers Vancouv...

3 hours ago

Active
$1,699,000
17 520 W 28TH AVENUE BC, Vancouver, R2853170

Beds: 2Baths: 3Built in 20241209 sqft

3 hours ago

Beds: 2Baths: 3Built in 20241209 sqft

Discover modern elegance at Lilibet on Cambie! This captivating 2-bedroom...

$1,699,000

MLS®: R2853170 Sutton Group - 1st West Rea...

3 hours ago

Active
$1,099,900
304 4590 EARLES ST, Vancouver Condos for sale, MLS® R2853169

Beds: 2Baths: 2Built in 19901214 sqft

3 hours ago

Beds: 2Baths: 2Built in 19901214 sqft

PENTHOUSE with PRIVATE ROOFTOP DECK-a RARE OPPORTUNITY to own a piece of...

$1,099,900

MLS®: R2853169 RE/MAX Crest Realty

3 hours ago

Active
$863,900
302 1771 NELSON ST, Vancouver Apartments for sale, MLS® R2853163

Beds: 2Baths: 2Built in 19901000 sqft

3 hours ago

Beds: 2Baths: 2Built in 19901000 sqft

Conveniently located a few blocks from English Bay and steps away from the...

$863,900

MLS®: R2853163 Stonehaus Realty Corp.

3 hours ago

Active
$1,799,000
130 649 E 3RD ST, North Vancouver Homes for sale, MLS® R2853158

Beds: 3Baths: 4Built in 20201851 sqft

3 hours ago

Beds: 3Baths: 4Built in 20201851 sqft

Welcome to the Morrison, a London inspired townhouse development with...

$1,799,000

MLS®: R2853158 Oakwyn Realty Ltd.

3 hours ago

Start your search with Richard Morrison, Top Award Winning Vancouver Realtor:

Contact Richard Morrison Top Vancouver Realtor today to find a Vancouver real estate and Vancouver condos for sale. This includes eastside residences and eastside apartment for sale. Also check out West Vancouver homes for sale or maybe an West Vancouver condos for sale. If you prefer North Shore, take a look at our listings in North Vancouver homes for sale and North Vancouver condos for sale.

Vancouver East Houses

Collingwood
Downtown East
Fraser
Fraserview
Grandview
Hastings
Hastings Sunrise
Killarney
Knight
Main
Mt Pleasant
Renfrew Heights
Renfrew
South Van
Victoria

Vancouver West Houses

Arbutus
Cambie
Dunbar
Kerrisdale
Kitsilano
McKenzie Heights
Marpole
Oakridge
Point Grey
Quilchena
SW Marine
Shaughnessy
South Cambie
South Granville
University
West End

Vancouver East Apartments

Champlain Heights
Collingwood
East Downtown
Fraser
Grandview Woodland
Hastings
Hastings Sunrise
Killarney
Knight Condos
Main
Mount Pleasant VE
Renfrew Heights
Renfrew
South Marine
South Van
Strathcona
Victoria VE

Vancouver West Condos

Arbutus
Cambie
Coal Harbour
Downtown VW
Dunbar
Fairview
False Creek
Kerrisdale
Kitsilano
Marpole
Mount Pleasant VW
Oakridge
Point Grey
Quilchena
S.W. Marine
Shaughnessy
South Cambie
South Granville
Southlands
University
West End VW
Yaletown
img

Richard Morrison

My name is Richard Morrison and I aim to empower people to buy and sell real estate in the most effective way possible. I can service all of your Metro Vancouver real estate needs & beyond. I specialize in Vancouver, North Vancouver, West Vancouver, Vancouver West, Richmond, Burnaby and other areas in the Lower Mainland BC Canada. You can be assured that whether buying or selling your home, I will get the job done. I offer a full compliment of real estate services with 15+ years of experience. About Richard Morrison

Related posts

Ozzie Jurock’s Vancouver Real Estate Market 2024 Ozbuzz Forecast

As 2024 starts, it's time to reflect on 2023 as another year of twists and turns in Canadian real...

Continue reading
by Ozzie Jurock

Annual Events in Vancouver

I have lived in Vancouver for over 30 years and I have experienced many of these events myself....

Continue reading
by Richard Morrison

Is AirBnB Allowed in Vancouver?

When it comes to deciding whether Airbnb is allowed in Vancouver BC, the answer depends...

Continue reading
by Richard Morrison