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My home's assessment has a direct relation to what my home is worth.
This assumption is a myth. When the city ofCalgary mailed you your property assessment at the start of the year it may have been close to the value of your home on July 1 the year before. That is when the city makes it's assessment, 6 months prior to you receiving the written copy; likely not what your home is worth now. Sometimes the number can be higher or lower then the actual value of your home. The market, the buyers determine the sale price of your home. The city determines the amount of taxes that you have to pay based on your assessment. Most of the time when you go to sell, your sale price and assessment price are not the same.
This was especially true in the hot markets over the last few years. As Calgary homes were appreciating quickly we were seeing sale prices much higher than assessment values because over 6 months a home was appreciating significantly but the assessment was only completed in early July.
If you have a new home your assessment is likely closer to the actual value of your home. This is because an assessor likely saw your property recently when the assessed value was determined for the City of Calgary.
If your home is not new, then your assessment value is likely calculated by a computer. Most properties in Calgary are assessed using the previous years assessment and a computerized formula to get the most recent assessment value.
Let's be clear about one thing: city property assessments have no relationship to the current market value of your Calgary property. The 2015 annual property assessments reflect the estimated market value of property as of July 1, 2014 and include any physical changes that have occurred up to December 31, 2014. The Calgary market has slowed over the past 12 months, and the city's assessment estimates are likely more accurate this year then they have been over the past several years due to the lack of rapid appreciation. Here are 10 separate examples that compare the sale price to the assessed value of the home. They are all different styles of homes and are located in different areas of the city. Most of these homes I was either involved as the selling or buying agent or I was watching the property closely to see what the sale price was.
|
Address |
SalePrice |
Assessed Value |
Sale Price vs Assessed Value |
|
2632 19av sw |
$423,000 |
$442,000 |
-5% |
|
79 Stradwick |
$567,500 |
$510,000 |
+11% |
|
233 Tuscany Ridge Hts |
$540,000 |
$596,500 |
-11% |
|
2004New Brighton |
$362,500 |
$365,500 |
No Change |
|
3226DoverCr |
$262,000 |
$228,000 |
+14% |
|
#103 11 Panatella |
$242,000 |
$292,000 |
-20% |
|
#2 4769 Hubalta |
$219,000 |
$188,500 |
+16% |
|
218 Cougarstone Ci |
$580,000 |
$521,500 |
+11% |
|
227 Cougarstone Ci |
$540,000 |
$527,000 |
+2% |
|
6323LombardyCr |
$510,000 |
$554,500 |
-9% |
As you can see there is no direct correlation between a home's assessed value and its sale price. If you have any questions about how to price your home or the assessed value of your home please do not hesitate to contact me. I would love to hear from you!
Tim
587.216.2371
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