Vancouver condos – Your home is worth more than just the tax assessment

Many lookers are operating under the misnomer that a home’s buying price needs to be just above its tax assessed value. In other words, they understand that tax assessed is the matching thing as “what a home is worth.” This is definitely not the case, especially here in Vancouver real estate, but just this month I’ve found no less than three potential buyers who refused to offer anything higher than the tax assessment value on homes they truly loved. To fight this, many agents have begun including phrasing like “priced under assessed value” in their promotional materials for the home’s sale. This has not worked. Instead, what’s transpiring is that buyers’ misunderstandings are seemingly validated and, thus, perpetuated. Purchasers see such abodes as “good deals,” but in truth they are not. The ASSESSED VALUE turns out to be determined by the public tax collector. (At BC this is a provincial crown corporation referred to as BC Assessment.) The entire purpose for the assessed price is to ascertain taxes; that is all. This value is noted and combined with the tax levels of the region.

It is differing from the FAIR MARKET PRICE. Fair market value proves to be the price that a abode can bring on the open market. You can see this calculation at work with any Vancouver condos. This is the price that educated, motivated, and willing buyers will offer to procure the property from a seller who is selling of their own free will. Fair Market Value is created by comparison to like properties which have sold in the previous three to six months. (If no comparable dwellings are available, the timetable may have to be extended.) Based on these homes’ selling prices–these are called “comps”–the representatives counsel the seller on a achievable asking price. Once a price is arrived at between a buyer and seller, this becomes the fair market value of a exact property. Thus, it stands to reason that preceding making an offer, a buyer must examine comps themselves to come to an understanding of what is reasonable and fair.