BC Assessment 2025 was released last week revealing the values of residential properties across the province, but what exactly does that information mean for homeowners?
The assessments, announced for over 1,120,000 properties throughout the Lower Mainland, reflect the market value of properties as of July 1, 2024.
“Across the Lower Mainland and throughout BC, the overall housing market has generally stabilized in value for a second consecutive year,” says BC assessment assessor Bryan Murao in a news release.
“Most homeowners can expect only modest assessment changes in the range of -5% to +5%.”
However, an assessment can also lead to some questions, no matter whether you are planning to buy, sell, or stay at your current residence.
Daily Hive connected with Shannon Mann, a realtor with Macdonald Realty, to learn more about BC Assessments and their impact on residential property owners.
What does an assessment mean for you?
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The first thing to keep in mind is that an assessment isn’t a “100% accurate benchmark” of what your property and home value is, said Mann.
It does play an important role when it comes to your property tax, however. While that amount is determined by your local municipality, it is also based on the assessment value provided by BC Assessment.
The assessment that property owners receive is a “holistic approach” that is determined by a property’s “unique” factors, such as a home’s location, view, size, age, various features (like garages, carports, decks), comparable prices, and other real estate market information.
Property information is also gathered by BC Assessment via building permits in your area, land titles, recent real estate transactions, updates made by the property owner (in BC, it is not required to report this to BC Assessment, however), and aerial street-front imagery.
Mann adds that an assessment is a “snapshot” but doesn’t necessarily reflect current market conditions, partly because the assessment valuation date was in the previous year.
If you noticed your assessment dropped slightly from the year before, that’s not necessarily a bad thing, added Mann.
“If you’re staying put, that means you’re paying less property tax,” she said.
But if you’re selling, it “can be an indication of sales of properties in your area” similar to your home. That could mean a lower sale price or indicate a downturn in the market.
Why do homes sell for more (or less) than assessed value?
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When considering buying or selling a home, that’s when market value comes into play. Market value is the price a home would mostly likely sell for on the open market, given current market conditions.
When realtors work with sellers, they determine the sale price of a property by examining comparable market data for homes in that neighbourhood under the multiple listing service (MLS).
Realtors also take into account a number of factors, including the “motivation of the seller” when setting a sale price for a home, added Mann.
“In every single case, when you’re evaluating for a seller, you’re going to look at what recent sales have been… recent being within the last year,” she said. Moreover, a realtor will examine how similar homes in the area have performed on the market.
“[Because] ideally you’d like to compare apples to apples,” added Mann. “I’m going to use recent sales to justify the price that I’m going to give for this house.”
A realtor also completes a walkthrough of the home and property, examining the interior and exterior condition of the home and any updates that have been made.
“If somebody is pricing something over what market value would be, it could be based on superior finishing inside, if they’ve got a top [appliances], [or if] they’ve used a top-of-the-line interior designer,” said Mann.
“People that do use interior designers, planners and architects, those houses will go more quickly if they’re priced within a certain range, and that can affect the value of a house for sure,” she added.
For the most part, sellers want their homes to sell for more than the assessed value. But in some rare cases, a realtor may come across someone looking to sell under an assessed value.
Some individuals might be in a rush to sell due to personal reasons, like illness or divorce. Or it could be due to financial reasons, like a substantial interest rate increase.
Some may think of it as a financial strategy when selling if the market is slower to try to attract more buyers.
In any case, Mann says it’s key for folks to hire a realtor for an accurate evaluation of your property.
If you’re curious about your 2025 BC Assessment, you can look it up here.