West Vancouver Real Estate

Many buyers are operating under the misnomer that a home’s purchase price needs to be just above its tax assessed value. In other words, they understand that tax assessed is the identical thing as “what a home is appraised.” This is really not the case, but only this month I’ve found no less than three potential buyers who refused to offer anything higher than the tax assessment value on homes they truly loved.

It’s because of this misconception that somerealtors write things such as “priced under assessed value” etc in their marketing remarks, and in turn, partially because of those marketing remarks properties priced under assessed value have been deemed good deals. This is not necessarily true . The Vancouver real estate market is a perfect example of this.

The ASSESSED VALUE is ascertained by the public tax assessor. (At BC this was a provincial crown corporation known as Vancouver BC real estate Assessment.) The entire justification for the assessed price is to determine taxes; that is all. This value is recorded and combined with the tax rates of the area.

According to remax Vancouver, this is different from the FAIR MARKET PRICE. Fair market value is the price that a abode can get on the open market. This is the cost that educated, motivated, and willing shoppers will pay to procure the property from a seller who is selling of their own free will. Fair Market Value is created by looking to similar properties which have sold in the previous three to six months. (If no comparable homes are available, the timetable may have to be expanded.) Based on these homes’ going prices–these are called “comps”–the Realtors direct the seller on a achievable asking price. Following a price is arrived at between a buyer and seller, this becomes the fair market value of a specific property. Thus, it stands to reason that in advance of making an offer, a purchaser should examine comps themselves to come to an understanding of what is reasonable and fair.