Uxbridge Information & Events

 

Property Assessment Information Does Not Set The "REAL WORLD" Market Value Of Your Home.

 

Simply Stated

 

Market Value is set by a Buyer and a Seller, both being aware of all the uses a property can be used for and neither acting under undue pressure.

The Best approach to determine what that may be is by using comparables.

 

 

Comparables

When You put your home on the market you rely on current market comparables provided by your real estate salesperson to set the value. You look at homes that are currently available, recently sold, and ones that did not sell. This information is current based on what is going on in the market today. You compare the features of the homes as well as the size of the lot. You also look at what is in the neighbourhood that may affect the value is the home close to the amenities you want or are their things in the neighbourhood you do not want to be near. These are things that affect the ultimate true market value of a home.

With the online marketing done today you can usually get a look at what the home is like inside as well. With the use web based programs such as Google street view you can walk the neighbourhood before even going to look at a property. You can truly compare these other homes to the one you are contemplating buying or selling.

Oddly enough when you appeal your assessed value the comparable method is the approach you have to use as well but based on the contrived values established by the assessment formulas.

 

Assessment

Assessment information is based on historical information statistically analyzed, in other words it is a contrived value calculated by a mathematical formula. In order for this this formula to work it requires a large amount of accurate data to be input by the assessment department. While some of the information is collected electronically the base information is collected by the assessment department in the field.

This data is subject to human error and certain criteria that is subject to human opinions. It is based on information that was input when your property was built. There are simply to many properties for the Assessment world to keep this information updated. This results in assessed or "market values" that do not necessarily reflect the real world.

The assessed Valuation may be based on information that does not reflect the home as it is today, it may not reflect the fact that it has been totally updated. The assessed value of a given property may also reflect a valuation based on an assessment appeal that was successful.

 

HUGE Margin Of Error In Assessed Values

 

These valuations have been know to be off by as much as 40% based on actual sales.

 

Unless you have access to all the information used to establish the assessed values you have no way of knowing how accurate they are.

In fact the assessment departments new "real time"  Market Value program that some are using to justify their listing or offer price has two different means of informing you of the potential inaccuracy of the valuation. One is the confidence factor and the other is the upper and lower confidence level valuations.

 

If they are not confident in their results,
How can you use them to justify your listing or offer price?

 

Stay Tuned --- . 

Earlier posts in the series

 You and "YOUR" Property Tax Bill - Inequities In Taxation - A Matter Of Fairness  
 You and "YOUR" Property Tax Bill - Environmental Impacts On Property Assessments #2
 You and "YOUR" Property Tax Bill - Environmental Impacts On Property Assessments
 You and "YOUR" Property Tax Bill - The 2010 draft budget goes before council today
 You and "YOUR" Property Tax Bill - Your Assessment Notice May Have been In The Mail
 You and "YOUR" Property Tax Bill -- Should Municipal Government Be Scrapped
 You and "YOUR" Property Tax Bill -- One Alternative
 You and "YOUR" Property Tax Bill -- My Prescription Provided Pain Relief
 You and "YOUR" Property Tax Bill -- Assessment Errors Can Be Costly
 Understanding Residential Property Assessment in Ontario - #7 in a series on property taxes
 You and "YOUR" Property Tax Bill -- Is Your Assessment Fair and Equitable 
 You and "YOUR" Property Tax Bill -- OUCH!!!!!
 You and "YOUR" Property Tax Bill -- Your Assessment Notice Is In The Mail
 You and "YOUR" Property Tax Bill -- Mill Rate Idiosyncrasy's
 You and "YOUR" Property Tax Bill -- Is Current Value Assessment (CVA) A Better Way?
 You and "YOUR" Property Tax Bill -- Who Takes The Biggest Bite?

 

 

Posts on Property Assessment and Taxation are for informational purposes only please read the  CAVEAT