At times, we meet people who want to sell their home and want to use the value on their property assessment to determine the selling price of their home. We also meet buyers who compare the asking price of a home with the property assessment by the city of Calgary. There are a few reasons why in Calgary the sale value is different from the city’s assessment.
Why property assessment value is not the sale value of a home
First of all, Calgary’s property tax assessment reflects the estimated market value of your property on July 1st of the previous year, and the home’s physical condition as of December 1st, the year before.
Realtors also look at the sale-ability, the curb appeal of a home and the maintenance inside the home. The City of Calgary will not look at the fact that a home is not maintained, dirty, outdated or that the walls are painted purple. All things that can impact the market value, assessed by a realtor.
Another reason where the assessment can differ is when the city is not informed about any developments. Think about the basement, for example. If the City of Calgary is not aware of the basement development, that value will not be taken in consideration.
How the City of Calgary determines the value of your home
To determine the value of a home, The City of Calgary uses mass appraisal techniques. The definition of market value is the most probable price a property would sell for, on the open market as of July 1 (the year before), as a validation date. Calgary’s real estate market is a volatile market, and values can change in a few months time.
The sales comparison approach is the one most used by the City of Calgary
To determine the market (assessed) value of your home, the city of Calgary uses one of three ways, depending on the type of property:
• The Sales Comparison: meaning the sales of similar properties
• Income: capitalize the income being generated by the property, when it is a rental
• Cost: land value, plus the depreciated replacement cost of the improvement.
The sale value is different from the city’s assessment
You can check with the city how your value got determined. You will need the access code on your assessment notice. Login at Calgary’s Assessment Resource. If you want to get more information on the process of appeal, please contact us.
If you are thinking of selling your home and want a current market evaluation (CMA) of your home, contact us by phone or fill out the following contact form.
Ask us for a free monthly Market Report
To stay up to date on the trends in your community, ask a free Market Report.
All sold data, including home features, number of days on the market and the ratio list price vs selling price. Sold data is a great way to understand the real estate market in your community.