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MPAC property value assessment

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[OP]
Deal Addict
Dec 15, 2004
1999 posts
174 upvotes

MPAC property value assessment

Has anyone in Toronto ever appealed their property assessment notice from MPAC? Received mine yesterday and it's $200K over what we paid in Fall 2015. My parents said theirs over the 30 years in their house has generally been lower than market value and our previous property was also much lower assessed value than the market value. Wondering if anyone has appealed and what the process is like and if they've had any luck lowering it?
29 replies
Deal Fanatic
Nov 11, 2008
8072 posts
1747 upvotes
girlstar wrote: Has anyone in Toronto ever appealed their property assessment notice from MPAC? Received mine yesterday and it's $200K over what we paid. My parents said theirs over the 30 years in their house has generally been lower than market value and our previous property was also much lower assessed value than the market value. Wondering if anyone has appealed and what the process is like and if they've had any luck lowering it?
It doesn't go by what you paid. It goes by what the average selling price is in the area. Have you looked at listings in your area? My parents paid 230k for their house 20 years ago, and now its worth close to 800k. Neighbouring houses are selling between 750-900k so there's not much I can do about the assessment.
Deal Addict
May 18, 2005
3412 posts
358 upvotes
You can always appeal if you have a good reason, it doesn't really hurt to try.
Deal Guru
User avatar
Mar 23, 2008
12223 posts
8631 upvotes
Edmonton
There's a thread in the Real Estate forum about this already... Might be good to browse through that. There's also a company that will appeal for you, and take half the tax savings. No idea if that works out well for you, but something to consider.

But really... You don't say how much of an increase that is relative to your property value. And if it's comparable to your neighbors or other comparable properties.

C
[OP]
Deal Addict
Dec 15, 2004
1999 posts
174 upvotes
EPcjay wrote: It doesn't go by what you paid. It goes by what the average selling price is in the area. Have you looked at listings in your area? My parents paid 230k for their house 20 years ago, and now its worth close to 800k. Neighbouring houses are selling between 750-900k so there's not much I can do about the assessment.
Yes I'm on top of sold reports in my area. Others sell for more but are significantly larger and I have commercial properties beside me which makes mine less desirable (i.e. Dumpster beside my fence).
Deal Expert
Mar 23, 2009
19452 posts
5497 upvotes
Toronto
$200000 over what you paid might be a lot or maybe not that much. Are homes in your area $500000? If so, then you probably have a good case. If homes in your area are $4 million, then maybe not.

BTW, in my neighbourhood, my assessment went up by 30% and my neighbour's close to 50%. However, for some reason the assessments in our area have been typically way too low, so even with these increases, some of the MPAC assessments are well below expected selling prices.
Sr. Member
Aug 6, 2014
830 posts
296 upvotes
Ottawa, ON
LoveRFD wrote: You can always appeal if you have a good reason, it doesn't really hurt to try.
is it possible to appeal for a lower assessment, and instead have your assessment go up?
Deal Addict
Sep 14, 2005
1418 posts
107 upvotes
girlstar wrote: Has anyone in Toronto ever appealed their property assessment notice from MPAC? Received mine yesterday and it's $200K over what we paid in Fall 2015. My parents said theirs over the 30 years in their house has generally been lower than market value and our previous property was also much lower assessed value than the market value. Wondering if anyone has appealed and what the process is like and if they've had any luck lowering it?
You have a strong case to argue here, I would not spend money to appeal but apply for the Request for Reconsideration application for free first.
Log on to the about my property website that is stated on your notice.
Find a link to apply for Request for Reconsideration preferably with reason and supporting document on why your assessment should be lower.
If MPAC does not revise your value, then you can spend the $125 to appeal to the Assessment Review Board.
[OP]
Deal Addict
Dec 15, 2004
1999 posts
174 upvotes

Thank you great article. Will definitely get on to this. As mentioned, my home is smaller than most on my street, I am right beside ugly commercial buildings with some dumpsters that occasionally smell and closer to the main street than I'm sure the comparables are.
Jr. Member
Sep 13, 2009
119 posts
51 upvotes
GTA
I just got my assessment and it went up 150K... It's higher than any home on my street of my model has sold for ever. I'm working on preparing to appeal it. The MPAC website says:
"To find out if your assessed value is accurate, simply ask yourself if you could you have sold your property for its assessed value on January 1, 2016. If the answer is no, we want to help you resolve your concern."

Nope I definitely could not have sold it for what i was assessed at. Homes that are the same model as mine with 100K in upgrades sell for less than my assessed value.
Deal Addict
Sep 14, 2005
1418 posts
107 upvotes
dhodgin wrote: I just got my assessment and it went up 150K... It's higher than any home on my street of my model has sold for ever. I'm working on preparing to appeal it. The MPAC website says:
"To find out if your assessed value is accurate, simply ask yourself if you could you have sold your property for its assessed value on January 1, 2016. If the answer is no, we want to help you resolve your concern."

Nope I definitely could not have sold it for what i was assessed at. Homes that are the same model as mine with 100K in upgrades sell for less than my assessed value.
File a Request for reconsideration first as it is free. Don't waste money to appeal to the Assessment Review Board until the property has been reviewed by MPAC.
Jr. Member
Sep 13, 2009
119 posts
51 upvotes
GTA
edvc520 wrote: File a Request for reconsideration first as it is free. Don't waste money to appeal to the Assessment Review Board until the property has been reviewed by MPAC.
Oh I'm definitely not paying any money for anything. The property tax savings even if I did win would probably not net out the cost of the appeal. I would take the cost of making an appeal and bet it all on red on roulette before I would ever pay them money. Better odds of winning in my opinion.
Deal Addict
Sep 14, 2005
1418 posts
107 upvotes
dhodgin wrote: Oh I'm definitely not paying any money for anything. The property tax savings even if I did win would probably not net out the cost of the appeal. I would take the cost of making an appeal and bet it all on red on roulette before I would ever pay them money. Better odds of winning in my opinion.
Make sure you provide ample amount of evidence (recent sales info) while you file Request for Reconsideration though. Otherwise, MPAC may treat the application as junk.
Deal Addict
Aug 30, 2011
3462 posts
1221 upvotes
Ottawa
Bear in mind they have a little leeway. We bought our house December 2004, and the assessment on January 1, 2005 was 10% higher than we paid. MPAC said that was within range allowed, so even though we paid a true market price (house was empty unsold for 6 months) we didn't get a revision in the assessment.
Deal Fanatic
User avatar
Jan 6, 2002
5948 posts
6138 upvotes
Toronto
fisher44 wrote: is it possible to appeal for a lower assessment, and instead have your assessment go up?
Yes.
As someone long prepared for the occasion, in full command of every plan you wrecked---
Do not choose a coward's explanation, that hides behind the cause and the effect...
Deal Guru
User avatar
Oct 23, 2008
12162 posts
8896 upvotes
GTA, ON
Uh... Markham. Change of $275k since 2012, or 47%

Both good news and bad news.
Tis banana is IRIE :razz:

10% off is cold, 50% off is warm, 75% off is hot, but FREE IS RFD!
Newbie
May 8, 2008
60 posts
25 upvotes
Toronto
I'm trying to determine what my chances are with a RfR, and what to include and write in it.

My assessment shows about the value I paid for it in fall 2015 (which was considerably over asking of course). However, when I look at the assessed values on other houses in the neighbourhood which were not sold recently they are all around 10% lower.

Despite that, almost all of the other houses are in fact quite a bit larger than mine (generally about 50% larger because I only have a backsplit-3) with double car garages, while mine only has a single. The only bonus with mine is that I have an irregular lot which is slightly larger than average.

Does anyone know, what are the chances of getting a reduction? Does it matter more what I paid or what the comparables in the neighbourhood are like? What do I need to include and say to argue my case?
Deal Addict
Sep 14, 2005
1418 posts
107 upvotes
Proo wrote: I'm trying to determine what my chances are with a RfR, and what to include and write in it.

My assessment shows about the value I paid for it in fall 2015 (which was considerably over asking of course). However, when I look at the assessed values on other houses in the neighbourhood which were not sold recently they are all around 10% lower.

Despite that, almost all of the other houses are in fact quite a bit larger than mine (generally about 50% larger because I only have a backsplit-3) with double car garages, while mine only has a single. The only bonus with mine is that I have an irregular lot which is slightly larger than average.

Does anyone know, what are the chances of getting a reduction? Does it matter more what I paid or what the comparables in the neighbourhood are like? What do I need to include and say to argue my case?
Slim chance because MPAC will for sure argue back that your property has a recent sale.
You can only argue the assessment based on an equity issue.
Find at least 3-5 properties with similar age, location, area, lot size, and quality, then you can argue for a lower assessment based on an equity issue.
Banned
Jun 30, 2016
71 posts
24 upvotes
Yes you can appeal. Just give a detailed info, when you do that.

Also remeber the increase is over 4 yrs on a pro rated basis, so your prperty tax won't do up a lot immediately but in a phase by phase manner in 4 yrs.

So if your house is 400 K and they have assed it as 600 k i.e 200 K over. For 2017 property tax will be based on 450 k, 2018 on 500 K and son on , only in 2020 you will be paying on 600 K.

My assessment went up by 120 K, so by 30 K for each of the 4 yrs 2017 to 2020. i am ok with it :) , since its still 150 K below the market value of my house :)

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