Assessed propel OVER the past 3 weeks [ have observed a number of offer and counter-offer negotia- tions between sellers and buyers. AL ended without 4 bind- ing contract being achieved. Whar, by coincidence, these potential sales had in com- mon was the belief of the seller thac the true value of his property was the value placed on his property as indicated on his 1998 prop- erty tax assessment. These owners were unwilling to drop their selling price below what their “cax assessment” stated was the “actual” value of their property. In one of these offer situ- ations the offer was a “low: ball” and really had ne chance of being agreed to. The others though, should have come rogether. It was my observation that the singular item that prevented sales from being formed was the orisustder- standing about “assessed value.” In British Columbia, the assessed value is defined, in s. 26(1) of the Assessment Act to be the “actual value” of ~ each taxable property. It is important to keep in mind that this setting of “actual value” under the Assessment Act has, as its primary under- lying purpose, the setting of an equitable base of valuation for the purpose of taxation. In determining “actual value” an assessor uses all normal appraisal considera- tions that is used in a private fee appraisal, With this in mind, it is easy to understand why home owners believe the “actual value” of their home, as stated on their tax assess- ment notice, would also be “market value.” Unfortunately, this is seldom the case. lines Real esate is an impertect market. No one can actually say what any property is “actually” worth at any given time. Why? As [ stared, real estate is an impertect marker — the price a property will sell for is determined by a number of varying factors. These factors include the motivation and need to sell of the owner, interest rates, overall economic factors, exposure to the market, desirability of the property and so on. The state of all market forces have tremen- dous impact on the “market valuc™ of a property. While the definition of “market value” of a property continues to be constantly redefined, the most enduring definition U've found is: “the highest price a willing seller will receive for his/her prop- erty from a willing and quali- tied buyer given a reasonable Period of exposure of the Property to the general mar- ker.” ‘ This definition clearly shows the variables rhat can affect property values. Realtors, and other property appraisers in arriving at an “appraised value” or listing price, know that the price they arrive at is, at best, a knowledgeable estimate of value. This estimate of value can vary by as much as 5% and sometimes cven more as the volatility or sluggishness of the current market greatly impacts value. So how does the “actual value” as indicated on tay assessment notices, mateh ap with the “actual sales price” achieved in recent sales. The “actual value” for assessment purposes is determined for an actuat date, July 1, of any given vear. Just for fun, P took a ran- dom selection of 22 recent North Shore sales competed in September and compared the price the seller received against the “actual value” as determined by the assessment vail notice. Here is what FE fonad: (Please note: The follow- ing information is just the result of reviewing 22 ran- do sales and mast not be implied to be an accurate method ef making compar: isons ... nonetheless the results were interesting.) Of the 22 properties, 10 properties sold at a price below what the “actual satue™ was stated to be on the assessment notice with 12 properties selling above the assessment notice’s price. The Friday, January 8, 1999 — North Shore News — 35 iS ii arithmetic average of the amount the 10 properties that sald below the assess: ment notice’s “actual price” was $21,500 and the arith: metic werage of the 12 prop- erties Unat sold above the assessment notice's “actual price” was $19,700 — roughly $20,000 below and above the assessed “actual draw from this information? L) The “actual value” as determined 09 your ass: ATAGLA Ome wemarerecnesese Building a new Vista CONSTRUCTION on The Vista at Hamersly Park is well under way. The new development, located at 365 East First St. in North Vancouver, is to feature one bedroom, one bedroom plus den, two bedroom and two bed- room pius den homes, ail with a 10-year New Home Warranty and a third party water penetration warranty. ETE sae : : SRE Brand new NCE... Amare mocccnccsccnaceree ADDRESS: 117 & 119 Glengarry Cr/ 106 & 708 Glenmore Dr. hite ment notice and “actual sales price” are seldom the same. 2) The odds are that the sassessed value” on which your property taxes are based have almose 250% chance of being valued too high or too low. What conclusions do I draw from this? Do not con- fuse the “value” placed on your property through vour tax assessment notice with the “value” you might See Misunderstanding page 42 duplexes The ultimate in luxury duplexes at this notable British Properties address. The finest detailing plus a wealth of fantastic amenities. These brand new duplexes offer a private setting nestled in this serene location. All backed by New Home Warranty. All three bedroom plus three-four bathrooms, vaulted ceilings, Co Oe er veerenmovesmnsenasesonves LOT SiZE: 60° x 100° COO emer see rere er etree nne ee eeeneaeseeesee® INTERIOR SIZE: 1,900 sq. ft. 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