Yes, it’s that time of year again and you have probably received your Property Tax Assessment by mail.
But the important question for most of us: IS THAT VALUE REAL?
Possibly, but not definitely.
- Property values are mainly used by Municipalities to help determine a general value of a property for taxation purposes.
- The municipal government then creates their annual budget and determine what each home owner will need to pay in the coming year for Property Taxes.
- It’s a fair way to establish a baseline for all properties
- If you feel think the value is too high, you can file an APPEAL
- You have until the end of January 2024 to do so
- When evaluating your property value, it is mostly comprised of the land value with the structures (improvements) having a separate value to come to your total assessed value
- If you appeal, you will need to have proof (evidence) of what makes your property different from assessed properties near you and explain why.
- An example may be if your property is NOT in a flood plain whereas a property valued next to yours is IN a flood plain. That would affect value most likely.
- Be warned however, that some people may go through the appeal process and be determined that the property has increased in value.
- Lastly, if you are appealing to decrease your taxes, this may not do the trick.
- Higher Values do not always mean Higher Taxes
- The property value is assessed at a Mill Rate set by the local municipality and is applied proportionately to all properties in your taxable region.
- Therefore, if all the similar homes in your neighbourhood went up by 20%, you likely won’t pay higher taxes.
A Property Assessment is NOT necessarily a market value.
- The assessment algorithm often does not take into consideration new improvements to a home (i.e. Renovations) that increase value without requiring a permit or any work done without permits.
- Also, it may not take into consideration new developments/amenities which can increase or decrease a value (or potential value)
IN CONCLUSION… IS THAT VALUE REAL?
- So the short answer is YES, it gives a general value based on July of 2023 numbers
- But it’s not the complete picture
- As Realtor’s, we have data and recent comparable ’SOLDS’ that can help to give a fuller picture of the value of your property TODAY
WE WOULD LOVE TO HAVE A CHAT to give you an idea of what your home is worth on the Open Market.
Even if you are thinking of selling months or years from now, we would be happy to chat with you about values, the market locally, or any questions you have.