Edmonton Tax Assessment vs Market Value...
Paying property taxes some say is the beauty of owning real estate. 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 of the city.
However, your property tax assessment reflects the estimated market value of you property on July 1st of the previous year, and the home’s physical condition as of December 1st the year before.
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.
Clearly, looking at 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 realtors also look at the curb appeal of a home and the maintenance inside the home.
The City will not look at the fact that a home might be dirty, is outdated or that the walls have been painted orange, all situations that would impact the market value, assessed by a Realtor.