Edmonton Tax Assessment vs Market Value
Have you ever wondered about Edmonton tax assessment vs market value? What do these terms mean, and how are they different? You'll find out in today's post! Paying property taxes, some say, is the beauty of owning real estate. At times, we meet people who want to sell their homes and use the value on their property assessment to determine the selling price of their homes. We also meet buyers who compare the asking price of a home with the city’s property assessment. However, your 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.
Let's look more at the difference between Edmonton tax assessment vs market value.
(Are you planning to remodel your house? Be sure to read about these five upgrades that might not add to resale value first)
Tax Assessment vs Market Value
One of the best ways to remember the difference between the two is this: tax assessment is less likely to fluctuate as much as market value. Why? Well, your tax assessment is largely based on the value of your property.
On the other hand, market value involves several fluctuating factors, including supply and demand, trends, and comps. We'll elaborate more on these points in a moment.
(Learn more about using comparative analysis when buying or selling a home in this post)
How Edmonton Assesses the Market Value
But first, let's talk about the different ways the city of Edmonton determines the market assessed value of a property:
To determine the market assessed value of your home, the city of Edmonton 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 city assessment to determine a selling or buying price for a home will most likely not be accurate, as the numbers used are based on July of the previous years. What is also important to understand is that REALTOR®S® also look at the curb appeal of a home and the maintenance inside the home.
(Are you planning to make energy efficiency upgrades to your home? Here are smart upgrades that also add to your home's resale value)
The City will not look at the fact that a home might be dirty, is outdated or that the walls have been painted orange. However, all situations that would impact the market value assessed by a REALTOR®.
Learn more about real estate in Edmonton
Do you want to talk more about buying or selling a home in Edmonton? Or do you have further questions about tax assessment vs market value? The Best Edmonton Real Estate Team is here to help! Click here to get in touch with us today.
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