2023 B.C. property assessments likely higher than value of home: Vancouver expert

Homeowners can now see their 2023 property assessments online, but one expert says it’s hard to know the value of a home unless it sells.

The assessment “significantly influences the amount of property taxes you pay,” the B.C. government said on its website.

Officials look at factors like the value, classification, location, and size of the property.

Your 2023 property assessment is now available at https://t.co/M1pysFPnvO

Check out provincial-wide highlights (and click through for regional info) here: https://t.co/71PbCMqfK3 pic.twitter.com/nYONZ9lTob

— BC Assessment (@bcassessment) January 3, 2023

One expert in Vancouver says that many people may see higher property assessment values, due to a change in interest rates.

“For many people, their assessment may be significantly higher than the previous year. For many, it’ll be pretty similar, but very likely your assessment is greater than the current value of your home,” said Tom Davidoff, associate professor at the University of British Columbia’s Sauder School of Business.

Assessor Bryan Murao says most B.C. homeowners can expect about a five to 15 per cent rise in their assessed values.

But the authority warns it may not be an accurate reflection of what homes are actually worth today, as the numbers are based on values from last Jul. 1, before the Bank of Canada started raising interest rates to curb inflation.

“The assessment is based on values last July, when interest rates were still quite a bit lower than they are today,” Davidoff explained.

Some homeowners may also see an increase in taxes with the jump in value, but Davidoff says it depends on where you live.

“Now as for your tax bill, what matters is, ‘what is your property value relative to the average in the city or municipality in which you live?’ And so if everybody’s assessment is 10 per cent too high, your tax bill isn’t really affected,” he said.

But Davidoff adds that the assessment isn’t a perfect system, as it can be tricky to know the market value of a property.

“I mean, it would be nice if you could every day see a fair market value for your home, but it’s hard to know the value of your home until it sells on the market and you get an approximation from last July. That’s what we work on with taxes,” he said.

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He says that if people are upset about their assessments, locals may be able to get re-evaluated.

“If you feel like it’s grossly unfair it’s something that you have the right to appeal,” he said.

Eventually, Davidoff says owners may have other options to estimate the value of properties like homes, but for now, he says it’s not unreasonable.

“I do think private players with the advent of big data and artificial intelligence, probably pretty soon will have fairly accurate applications that can estimate the value of your home, but I don’t think the tax system is highly unfair,” Davidoff said.