Real Estate

Property Assessment Review Question

  • Last Updated:
  • Mar 1st, 2018 6:37 pm
[OP]
Deal Addict
Jan 10, 2007
1565 posts
605 upvotes
Abbotsford

Property Assessment Review Question

Just trying to figure out if I'm out to lunch on my BC Asseessment complaint. I have a scheduled hearing on Wed, never done this before.

We bought a house on a culdesac in Sept last year for $585K. Previous assessment was $402K in 2016 - it has now jumped to $553K- 38% increase. The issue I have is my next door neighbour jumped 39%, but then the other 14 houses on the street only climbed from 15-20%. When I called to discuss I was asked "what did you pay for the house?". That's a fair question, but the issue is I paid what I paid because the market had gone up. I can't figure out why I'm being punished for that, and all my neighbours who didn't transact in the last year are not having to deal with the rising tide lifts all boats issue. I'm sure I'll be asked about comparable homes in the neighbourhood (other streets than mine), but my main (and really only argument) is that the whole street should be moving give or take in the same direction.

Worse, my neighbour on the other side sold in Nov (after assessment was done) - last year he was $334K, this year $401K, but he sold for $485K. So it's clear the entire street is moving in proportionally.

Hoping for some advice for my hearing or perhaps just someone telling me I'm out to lunch.
7 replies
Deal Addict
Feb 22, 2007
1977 posts
237 upvotes
Mississauga
you're out of luck...

the act states that the FMV is the best indicator of what the assessment should be...

and FMV is the price you paid regardless of what we think of the market. You bought the house in an open market, transacting with an unrelated person....which means price you paid is the meeting of the minds...you thought it was a fair price to pay..given the market conditions and the seller accepted.
[OP]
Deal Addict
Jan 10, 2007
1565 posts
605 upvotes
Abbotsford
pardnme wrote: you're out of luck...

the act states that the FMV is the best indicator of what the assessment should be...

and FMV is the price you paid regardless of what we think of the market. You bought the house in an open market, transacting with an unrelated person....which means price you paid is the meeting of the minds...you thought it was a fair price to pay..given the market conditions and the seller accepted.
but by that theory, houses would never go up until there's a transaction on that particular unit
Deal Addict
Feb 22, 2007
1977 posts
237 upvotes
Mississauga
the FMV is the best indicator....so even though a house has not sold in 20 years, they would use the information of the neighbouring homes to help gauge what the value is to be assessed at.

I've gone through this with my house and it ended up being a waste of time. Especially if you plan on going in with the argument that you have.

I went in and said my house should be valued lower because I have a fire hydrant, I'm at an intersection etc. etc. and they asked me if I looked at other houses without those features during my house hunt. i said yes, and they were higher priced or people bid much higher on them.

They turned around and said, exactly, the fire hydrant and intersection are already taken into account within the price you offered and purchased the house for.
Jr. Member
Nov 20, 2016
151 posts
23 upvotes
You have valid arguements. You really need to look at the size of the other homes on the street relative to what they were assessed at. How did you argue your case with the appeal application? Do you go straight to court in BC? In Ontario you get assigned an assessment officer and you normally can settle with them and avoid going to court.
Deal Addict
Aug 30, 2011
3462 posts
1221 upvotes
Ottawa
oakjefferson wrote: but by that theory, houses would never go up until there's a transaction on that particular unit
In Ontario, that inequity was addressed by reassessing all homes, whether sold or not. We paid $270,000 in 2004, and are assessed at around $500,000. Are you saying that in BC this doesn't happen?

As far as your own assessed value, you can't really argue that it isn't worth what you paid.
[OP]
Deal Addict
Jan 10, 2007
1565 posts
605 upvotes
Abbotsford
land portion was ok. It's the per sq ft charge for the home that is out of whack. I presented what each house was per street to show how I was higher. Also showed that the whole street value rose as much as I did as evidenced by the neighbours sale 2 months ago. fingers crossed but not hopefull
[OP]
Deal Addict
Jan 10, 2007
1565 posts
605 upvotes
Abbotsford
OttawaGardener wrote: In Ontario, that inequity was addressed by reassessing all homes, whether sold or not. We paid $270,000 in 2004, and are assessed at around $500,000. Are you saying that in BC this doesn't happen?

As far as your own assessed value, you can't really argue that it isn't worth what you paid.
yes - I made that clear in my arguement, that it was tough to say mine was too low. But by my neighbours being artificially low, it increases my tax burden portion unfairly. My taxes would go down even if my assessed value stayed the same, if the other houses were being treated the same in valuation.

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