Home Appraisal vs. BC Assessment Values
When it comes to real estate, you need to know your numbers. A home appraisal and BC Assessment will prove useful in determining property value. However, they each take different approaches when calculating the figure.
Below are the differences between a home appraisal and BC Assessment.
Functions
A home appraisal provides an estimate of your property’s market value. You may require an appraisal for purposes like mortgage financing, real estate listing, litigation, and capital gain calculations. The BC Assessment, on the other hand, evaluates homes in British Columbia to determine how much property owners will pay in taxes to the Crown.
It is important to note that the figure on the BC Assessment notice may be different from that of an appraisal. Market values are constantly changing. The BC Assessment reflects the market value as of July 1 of the previous year, while a home appraisal reflects the current value.
The players
Typically, the lender in a mortgage process will require an appraisal. Although the buyer must pay for the appraisal, the findings will be presented to the lender. The lender will then use the findings to determine whether they should approve the mortgage. If you are selling a home, you can order your own appraisal and use the findings as a guide for pricing. You can also request an appraisal for other personal purposes.
BC assessors provide reports to property owners. They also share the assessment notices with regional districts, municipal governments, tax jurisdictions, and the Ministries of Health and Education since the revenue from property taxes will fund community services.
Factors considered
Property appraisers conduct in-depth assessments to produce accurate reports. Among other things, a home appraisal takes into account the following:
- The desirability of the neighbourhood in which the home is located
- Age and physical condition of the home’s interior and exterior
- Total square footage and the number of bedrooms and bathrooms
- Recent home improvements
- Features such as swimming pools, gyms, and adequate parking
- Positive and negative views
- Comparable recent sales
Similarly, the BC Assessment has a list of factors to review. To determine the value of a property, assessors consider factors including:
- Size, age, and condition of the home
- The home’s location and views
- Revenue or rental value
- The cost to replace the home if it was destroyed
- The price of similar homes in the area
The benefits of a home appraisal
Once you own a property, you will receive a BC Assessment notice each year, but also knowing a property’s appraisal value is useful in a number of situations.
As a seller, using the home appraisal value to price your property may help you to quickly wrap up the sale as you can present a reasonable deal to buyers.
You’ll also benefit from knowing a property’s value as a buyer, as you want to ensure that you’re getting a fair price. If the home’s appraised value is less than the price listed, you can use it to negotiate a better deal. If you need financing, most lenders require an appraisal as part of a mortgage application. You might also need a home appraisal if you apply for refinancing.
Home Appraisal in Vancouver
If you need a home appraisal and are searching for a reputable Vancouver appraisal company, look no further than Adlaw Appraisals Ltd. Our team of licensed appraisers is ready to deliver accurate appraisals in a timely manner. Order an appraisal online today or call us if you have questions about a home appraisal in Vancouver.