Real Estate

Priced vs assessed value on $1M+ properties

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  • Feb 12th, 2020 7:56 pm
[OP]
Deal Addict
Dec 24, 2009
1161 posts
1006 upvotes

Priced vs assessed value on $1M+ properties

Is it normal for the assessed property value to be significantly lower than asking price for $1M+ homes? Looking in the GTA, the discrepancy could be as large as $500k that I've seen. That's not a bad thing for tax purposes but is there something else to consider here?
4 replies
Deal Addict
User avatar
Jan 2, 2012
4425 posts
2618 upvotes
Toronto
Ken_vs_Ryu wrote: Is it normal for the assessed property value to be significantly lower than asking price for $1M+ homes? Looking in the GTA, the discrepancy could be as large as $500k that I've seen. That's not a bad thing for tax purposes but is there something else to consider here?
In Toronto the MPAC assessments are essentially useless for helping determine a good market value. They are only done I think every 4 years with phased in increases over that time for tax purposes, so the amount you see may be reflective of their assessment from several years ago, and even back then it probably wasn't accurate.

I only see upside to a low assessment, with lower taxes paid.
Newbie
Sep 19, 2019
82 posts
56 upvotes
yup. pretty normal across all property types in GTA.
Deal Fanatic
Mar 27, 2004
7976 posts
5993 upvotes
Toronto
useless really. especially older homes.

for cookie cutter homes in the suburbs there is some use to it for valuing as you can know whether two houses on the same street that seemingly look identical may have minor differences .
Full-time Realtor
Sr. Member
Jan 13, 2007
624 posts
554 upvotes
Toronto, Ontario
From all the MPAC assessments I've seen, every single one of them are assessed lower than market value.

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