Should I Appeal My Assessment?
(for Residential appeals only)- This Guide will help you decide if you should appeal your residential assessment. If you do appeal, it will help you be better prepared.
- This Guide is interactive. You will:
- Answer some questions
- Listen to videos
- This Guide will save you time and effort. You will:
- Learn how to get better evidence
- Hear if you will likely have a strong or weak case
- You need about 10 minutes for a simple issue, 30 to 45 minutes for a more complex one.
- List of Issues
- a.My assessment is not at market value (too high or too low)
- b.There is a problem with my property or it is in poor condition.
- c.The description of my property (e.g. size, etc.) is wrong
- d.My assessment is not fair compared to assessments of similar properties (equity issue)
- e.Negative factors reduce the value of my property (e.g. noise)
- f.My assessment went up more than my neighbour’s or the average for my area
- g.My assessment is higher than other properties
- h.My improvement assessment went up, but my property did not change
- i.No properties sold in my area, so my assessment should not change
- j.I cannot sell my property now for as much as it is assessed.
- k.My taxes are too high
- l.I was treated poorly by BC Assessment or the Property Assessment Review Panel
- m.I have a different concern.
Start your evaluation now:
- Click on any issue in the left column.
- You will then answer some questions.
- In some pages, you can listen to videos or just read the text.
- After reviewing one issue, you can stop or look at another issue.
We cannot tell you if you will "win" or "lose" your appeal. It is completely up to you if you appeal. This Guide will help you with this decision.
Need help? See the above link to instructions or
contact us
<--- Choose an issue.
Introduction:
This is one of the most common issues. We will recommend what support or evidence you will need.
- Keep in mind: you should be looking at what your property was worth around July 1 last year.
- Option before reviewing this issue: quick check on common weaknesses
Questions for Issue a
Have you already appealed to the Property Assessment Review Panel by their deadline of January 31st?
We cannot assist you if you have not first appealed to the Property Assessment Review Panel by their deadline.
-
There is only one exception: something happened beyond your control that caused you to miss the deadline - see Appeal Guide.
-
Do not spend time using this Guide, unless we have told you that we may be able to handle your appeal. For further information: contact us.
Do you have market evidence on the value of your property?
Instructions:
Estimate what your property was worth around July 1 last year. This is the valuation date for your assessment.
You should have some market evidence for your estimate. For suggestions: researching market evidence.
Before you proceed further, make sure you get your own evidence.
If you do not have better evidence than BC Assessment, you probably will not succeed. Ask yourself: Is it worth my time and expense to appeal?
Researching market evidence:
You have two options:
- Get advice from a professional;
- Research evidence on your own.
OPTION 1: Advice from Professionals:
You may get advice from an appraiser or real estate sales agent on your property's market value.
An appraisal:
- Usually is the best evidence.
- It analyzes property sales, which are most similar to your property.
- The main disadvantage is the cost to hire an appraiser. This cost is often more than any tax savings you will get - even if you are fully successful in your appeal.
- You may not want to pay this expense until after you decide whether to appeal.
Real estate agent's opinion:
- An agent might only give you a verbal opinion or a very brief written statement with no supporting evidence.
- It can help you decide whether or not to appeal.
- If you decide to appeal you will need more evidence to have a better chance of success.
OPTION 2: Research evidence on your own
You can do your own research, especially now, when deciding whether or not to appeal.
- Look for sales that are most similar to your property.
- The sales should have occurred as close as possible to July 1 last year. This is valuation date for your assessment.
- You can find sales:
- BC Assessment's website: e-valueBC
- Multiple Listing Service (MLS) database - you need a real estate agent to access this data
Listings of properties for sale are not very useful, because they do not truly indicate market value. A Listing is just one owner's asking price.
For further guidance you can view: Step 1 in Preparing Submissions on the Market Value of your Property.
Later in this section, we will help you interpret the sales.
What type of market evidence do you have?
Have you picked the sales which are most similar compared to your property?
Instructions:
When you are comparing other properties that sold, make sure they are similar enough.
- Imagine you are buying these properties. Are they similar to your property? Look at things that buyers find most important (e.g. location, lot size, view, house size, age, etc.).
- Look up descriptions of other properties through BC Assessment's wesbite:e-valueBC.
- See Hints on Comparables.
If you pick sales that are significantly different from your property, they are not good comparisons.
If you have not selected the most similar properties, you will probably not convince us that your assessment is wrong. See Hints on Comparables.
Unless you find better evidence, you probably will not succeed. Ask yourself: Is it worth your time and expense to appeal?
You have finished evaluating this issue.
Hints on comparables:
Timing of Sale:
Choose properties that sold as close to July 1 last year as possible:
- Sales comparables are not restricted to those that occurred before July 1. You and BC Assessment may pick sales that occurred before or after this date.
You should look for sales comprables that are the most similar to your property:
- Look at things like the size of lot, the size of the house, its age, condition, quality, and so on.
- Location is a key factor. Comparables that are far away from your property are the less useful.
Listings:
Listings of properties for sale are less useful than actual sales:
- The problem with a listing is we do not know the property's selling price until it sells. The selling price might be significantly different from the asking price in the listing.
Have you analyzed the differences between the sales and your property to estimate the value of your property?
Instructions:
This is the trickiest part of estimating value. There are two possible methods to account for differences. We recommend you use the qualitative method, which is the quickest and easiest. For assistance see in Step 2 in Preparing Submissions on the Market Value of your Property .
To have good evidence, you must consider the key differences between the sales comparables and your property.
If you prefer, you can do this analysis later. However, talk to BC Assessment now. This discussion may help you decide whether or not to appeal. See the instructions in the next question.
Do you and BC Assessment agree on your property’s market value or do your ranges in values overlap?
Instructions for question:
- Talk to BC Assessment and ask them to explain how they arrived at your assessment.
- Review with BC Assessment your market value opinion and your evidence.
Normally, you and BC Assessment cannot "prove" that your property is worth one precise figure. Because it is difficult to estimate the value, usually you can only say that your property is worth something within a range of values.
For example:
- You say "my property is worth between $425,000 and $450,000". Any assessment within this range could be correct.
- BC Assessment says your property value is $440,000 to $475,000.
- Your ranges overlap. There is some agreement the value falls between $440,000 and $450,000.
- Your answer to this question would be "Yes".
Do you and BC Assessment agree on what change (if any) is needed to your assessment?
If you both agree the assessment should change, ask BC Assessment to confirm they will issue a new assessment.
If you both agree that no change is necessary, then you do not need to do anything else.
You are finished evaluating this issue.
You and BC Assessment do not agree on the market value of your property. Are you and BC Assessment very far apart on what the assessment should be?
See acceptable variation.
You and BC Assessment are close in your estimates of market value.
Because these are just estimates, we do not know who is correct. For this reason, we will usually not make a small change in the assessment. See acceptable variation
You should also think about the potential benefit of appealing:
-
Possible savings in property tax may be less than your time and expense to participate in the appeal steps;
-
This cost-benefit decision is completely yours.
You are finished evaluating this issue.
Acceptable variation:
Estimating market value is not an exact science. It is usually hard to interpret the differences between your property and the sales comparables. We, therefore, cannot say that your property is worth one precise figure. There is a range of values, all of which are equally correct.
- The range or amount variation will be different with different types of properties and market evidence. If it is difficult to find sales that are very similar to your property, there will be more variation.
- Because of the range in values, we may not make a small adjustment to your assessment. In other cases, we have said a difference of 5% or less is not considered significant.
For example:
- You estimate that the value of your property is $540,000.
- Your assessment is $560,000.
- The difference is $20,000 or slightly less than 4%.
Unless you have precise market evidence (such as the sale of your property), we will usually not reduce your assessment.
Do you want to appeal your property assessment?
Your deadline is April 30th.
Final check:
See Common weaknesses in market value positions.
- Do any of these weaknesses apply to your analysis?
- If so, we suggest you re-examine your position. Unless you can get better evidence or support, you probably will not succeed.
- It is completely up to you if you appeal your property assessment. We hope this Guide has helped you decide.
You are finished evaluating this issue.
Common weaknesses in market value positions:
Let’s look at common weaknesses that you should avoid. You can appeal now and then begin to strengthen your spport. However, if you cannot provide good evidence, then you may not have a strong case and it may not be worth your time and expense to appeal.
Percentage increase:
A common mistake is to just look at the percentage increase between last year's assessment and this year's assessment.
- This is not good evidence as it does not account for any errors in the last year's assessed value.
- Also, the market values of properties like yours may have changed by a different percentage than other properties.
No evidence to support your arguments:
Make sure you provide your own evidence.
- Do not simply criticize BC Assessment's evidence or numbers. If you do not provide anything better, we may agree with BC Assessment.
- You must get your own evidence. We will not do the research for you or BC Assessment.
Inferior evidence:
Watch the quality of your evidence. If BC Assessment has provided some sales , ask yourself:
- Can I provide better evidence?
- Are my sales more similar to my property than BC Assessment's sales?
Keep in mind: listings of properties for sale are usually weaker evidence than actual sales of similar properties.
Small adjustments:
Do not expect us to make a small adjustment to your assessed value (e.g. a few percent or less).
- Estimating market value is not an exact science.
- We usually cannot say precisely what your property is worth.
- It is often more reasonable to say your property value is within a range of values. For example, it is worth from $375,000 to $400,000.
Assessment comparisons:
Do not simply compare your assessment to other assessments. For example:
- It is not enough to say your neighbour's house is assessed $40,000 less than yours.
- Maybe this property is worth less. It might be smaller, poorer quality, or have less view, etc.
Introduction:
This issue deals with the condition of your property. Your property might be worth less if it has a problem or needs major repairs.
Keep in mind:
We must look at what the condition of your property was on October 31 last year. For example:
- If your property was damaged before October 31 last year, we can consider it for this year's assessment.
- If the damage happened after October 31, we can only consider it for next year's assessment.
Questions for Issue b
Have you already appealed to the Property Assessment Review Panel by their deadline of January 31st?
We cannot assist you if you have not first appealed to the Property Assessment Review Panel by their deadline.
-
There is only one exception: something happend beyond your control that caused you to miss the deadline - see Appeal Guide.
-
Do not spend time using this Guide, unless we have told you that we may be able to handle your appeal. For further information: contact us.
Do you have BC Assessment’s description of your property (list of buildings and details such as size, number of rooms, etc.)?
- Contact BC Assessment for the property description. This document is often called the Property Valuation Summary.
- Check to see if there are any errors in this description.
Do many similar properties in your area have the same problem as your property?
Keep in mind:
We suggest you invite BC Assessment to see your property. You can show BC Assessment your concerns and they may agree to reduce your assessment.
Example:
Your house is 25 years old and your roof must be replaced. Do most other houses in your area need new roofs? If so, the answer to this question is "yes".
We suggest you take these steps:
- Check to see if any similar properties sold in your area over the last year. You can use BC Assessment's website e-valueBC.
- Compare their sales prices with your assessment.
- Since these properties are in similar condition, your assessment should be roughly the same as these sale prices.
You should not expect to receive a discount compared to other properties which are about the same age and condition as your property.
For more assistance with these steps: Review market value using common methods.
You are finished evaluating this issue.
Do you have an estimate of the cost to repair the problem or other evidence on how much it reduces your property's market value?
You will need some evidence. This might be an estimate of the repair costs from a contractor or other documents. It is best if you can show how much the problem reduces the value of your property.
Unless you find evidence, you probably will not succeed. Ask yourself: Is it worth my time and expense to appeal?
You have finished evaluating this issue.
Are the costs of repairs (or problem with your property) large compared with your total assessment?
Keep in mind:
Usually, we will not reduce your assessment if the repair costs are small (less than 5% of your total assessment).
Example of damage or problem with your property:
What happened?
- Your house was flooded.
- A contractor estimates it will cost $8,000 to repair.
- Your property assessment is $500,000.
- The repair costs equal 1.6% of the assessment ($8,000 divided by $500,000).
Is this a "large" problem compared to your assessment?
Water damages of $8,000 are not large compared to your assessment:
- When BC Assessment sets your assessment, they are just estimating your property's market value.
- Your property may be worth a little less or a little more than your assessment.
- Because of this uncertainty, we probably would not reduce your assessment by this small amount.
Anything less than 5% is a small amount and usually we would not reduce your assessment.
Your assessment is an estimate of your property's market value. Therefore, we cannot say that your property is worth one precise figure. It could be worth a little less or a little more than your assessment.
For this reason, we will usually not make a change in your assessment for a small amount of repairs.
Think about the potential benefit of appealing:
-
Possible savings in property tax may be less than your time and expense to participate in the appeal steps;
-
This cost-benefit decision is completely yours.
You are finished evaluating this issue.
Talk to BC Assessment. Do you and BC Assessment agree on how much your assessment should change?
Instructions:
- Talk to BC Assessment about your concerns.
- Show them any documents you have, such as repair estimates.
- If they have not visited your property, invite them to see the condition for themselves.
If you both agree your assessment should change, ask BC Assessment to confirm they will issue a new assessment.
If you both agree that no change is necessary, then you do not need to do anything else.
You are finished evaluating this issue.
Introduction:
This issue deals with BC Assessment's description of your property.
-
Your assessment is based on the type of property, the size of the land and house, age and other important factors.
-
If BC Assessment's records are wrong, your assessment may also be wrong.
Questions for Issue c
Have you already appealed to the Property Assessment Review Panel by their deadline of January 31st?
We cannot assist you if you have not first appealed to the Property Assessment Review Panel by their deadline.
-
There is only one exception: something happened beyond your control that caused you to miss the deadline - see Appeal Guide.
-
Do not spend time using the Guide, unless we have told you that we may be able to handle your appeal. For further information: contact us.
Do you have BC Assessment’s description of your property (list of buildings, size, number of rooms, etc.)?
- Contact BC Assessment for the property description. This document is often called the Property Valuation Summary.
- Check to see if there are any errors in this description.
Do you have any evidence or documents to show that BC Assessment's records are wrong?
Example:
Your assessment description says you have a 600 square foot basement suite. But, your basement is complete unfinished.
- You could take pictures to demonstrate that you do not have a basement suite.
- You could also invite BC Assessment to see your property to verify this for themselves.
- Unless you find evidence, you probably will not succeed.
- You could invite BC Assessment to see your property. They may agree to change your assessment.
You have finished evaluating this issue.
Does the error in your property description make a large difference in your total assessment?
Instructions:
- If possible, estimate how much your assessment would change if the error was corrected.
- Calculate the percentage change in your assessment.
- Is this a large change (more than 5%)? If so, answer "yes" to this question.
Example of an error in your property description:
The error:
- The property description says you have a 600 square foot basement suite. However, you do not have a suite. Your basement is completely unfinished.
- You find out from BC Assessment that the basement suite is valued at $25,000.
- Your total property assessment is $350,000.
- This error is equal to 7% ($25,000 divided by $350,000).
Is this a "large" error compared to your assessment?
A 7% error is large enough to request a change in your assessment. Usually, we say:
- more than 5% is significant (or large enough to request a change);
- less than 5% is too small to request a change in your assessment.
In this example, the answer to the question would be "yes". The error does make a large difference.
Your assessment is an estimate of your property's market value. Therefore, we cannot say that your property is worth one precise figure. It could be worth a little less or a little more than your assessment.
For this reason, we will usually not make a small change in your assessment for a minor error.
Think about the potential benefit of appealing:
-
Possible savings in property tax may be less than your time and expense to participate in the appeal steps;
-
This cost-benefit decision is completely yours.
You are finished evaluating this issue.
Talk to BC Assessment. Do you and BC Assessment agree on how much your assessment should change?
Instructions:
- Talk to BC Assessment about your concerns.
- Give them any documents you have that show the error.
- If they have not seen your property, invite them to visit so they can verify the error.
If you both agree your assessment should change, ask BC Assessment to confirm they will issue a new assessment.
If you both agree that no change is necessary, then you do not need to do anything else.
You are finished evaluating this issue.
Introduction:
Equity or fairness appeals are probably the most complex.
- Before you start this evaluation, learn more about the principles of equity.
- Option before reviewing the issue: quick check on common weaknesses.
Principles of Equity:
Your assessment should be accurate which means your property should be assessed at market value. Your assessment should also be fair. This is also called equity.
What is an equitable assessment?
If other similar properties in your area are assessed below their market values, then your property should also be under its market value.
For example:
- The majority of houses in your neighbourhood are assessed 15% below their market values.
- To be fair or equitable, your assessment should also be approximately 15% below your property's market value.
What should I do?
Look at how similar properties are assessed:
- Are they assessed at their market value? or,
- Are most under assessed (below their market value)?
You need to:
- Decide which properties you want to compare with. You could compare your property to similar properties in:
- the entire municipality. or
- your neighbourhood, or
- a smaller area. - Show these other properties are assessed significantly below their market values.
It is difficult to find the market values for your property and for similar properties. We will give you some assistance later in this website.
What if my property is also assessed above its market value?
You should examine the issue my assessment is not at market value (too high or two low). You might have both a market value and an equity issue. It is easier and more effective to first examine the market value.
Questions for Issue d
Have you already appealed to the Property Assessment Review Panel by their deadline of January 31st?
We cannot assist you if you have not first appealed to the Property Assessment Review Panel by their deadline.
-
There is only one exception: something happened beyond your control that caused you to miss the deadline - see Appeal Guide.
-
Do not spend time using this Guide, unless we have told you that we may be able to handle your appeal. For further information: contact us.
Have you calculated the “level of assessment” for your property?
See level of assessment example.
Instructions:
- First, estimate the market value of your property.
- Then, compare this value to your assessment to calculate the "level of assessment".
Level of assessment examples:
Example 1:
- Your property is assessed at $500,000.
- You purchased it last year for $450,000.
- The level of assessment is the assessment divided by its sale price:
$500,000/$450,000 = 1.11 - Your property is assessed at 111% of its market value of 11% over its market value.
Example 2:
- Your property is assessed at $270,000.
- You have an appraisal that says the market value last year was $300,000.
- The level of assessment is $270,000 divided by $300,000 = 0.9
- Your property is assessed at 90% of its market value or 10% under its market value.
- You must take this step to confirm there is an equity problem with your assessment.
- If you are trying a different method, you may not be able to show that your assessment is unfair.
- See common weaknesses in equity positions.
Unless you get better evidence, you probably will not succeed. Ask yourself: Is it worth my time and expense to appeal?
You are finished evaluating this issue.
Common weaknesses in equity positions:
Let's look at common weaknesses that you should avoid. You can appeal now and then begin to strengthen your support. However, if you cannot provide better evidence, then you may not have a strong case and it may not be worth your time and expense to appeal.
Assessment increase from last year:
You may be unhappy your assessment went up more than your neighbours. Usually, you will not succeed with this argument:
- We cannot tell if your previous year's assessment was correct.
- Your higher increase could be due to last year's assessment being too low.
- This year's assessment may be fully correct.
Only choosing equity comparables that support your point of view:
Have you compared your assessment with all similar properties in your area?
- Probably, we will not agree with you if there are similar properties that you have not used.
Comparison group:
What is the best comparison group?
- Are you only using a few properties to demonstrate your assessment is unfair?
- You must show why they are unique compared to other properties in your area.
- We usually prefer to look at the largest possible group of comparables.
Only comparing assessments within the same area:
When you are looking at equity, you cannot compare properties that are in different municipalities or taxing jurisdictions from your property.
Must look at the total assessment:
When you are comparing your assessment with others, you cannot just look at the land or improvements.
- The Assessment Act requires that you look at the total assessment. This is because it is possible that your land or improvements appear unfair, but that your overall total assessment is fair.
Which group do you want to compare your assessment with?
(i) your entire taxing jurisdiction, municipality or rural area;
(ii) your neighbourhood; or
(iii) a smaller group.
Is your smaller group of properties unique in some important way from other properties in your area?
Keep in mind:
It is important that they are so different that buyers see them differently from other properties. See equity examples.
Equity examples:
Example 1 - Waterfront:
Buyers usually see waterfront properties as very different from non-waterfront properties. (And, usually pay much more for being on the water).
- Probably, a waterfront property should be compared to other waterfront properties. They are seen as significantly different from properties not on the water.
Example 2 - Number of bedrooms:
You have a 3-bedroom house. Some houses in your neighbourhood have 3 bedrooms and some have 4 bedrooms.
- While some buyers may prefer more rooms, others may prefer fewer but larger rooms.
- It may be hard to show that buyers see 3 versus 4 bedroom homes as very different.
Probably, it is more appropriate to compare all single family houses in your municipality.
As a general rule:
We, at the Board, prefer a larger group of comparables unless there is a clear reason to look at a smaller group.
You may not succeed in your appeal. We have decided in numerous other appeals:
-
Unless the smaller group is unique, you should look at equity based on the whole neighbourhood or taxing jurisdiction.
-
See equity example.
As yourself: Is it worth my time and expense to appeal?
You are finished evaluating this issue.
Do you have equity statistics for your comparison group (called Assessment to Sales Ratios or ASRs)?
Obtaining equity stats:
BC Assessment can usually provide you with the equity statistics for the entire taxing jurisdiction and, sometimes, for your neighbourhood.
If you are using a smaller comparison group, you must calculate the statistic:
- First, obtain the market values of the properties;
- Compare the values to their assessments (see level of assessment example);
- Then, calculate the average statistic for the properties.
- For further guidance, see Equity Statistics.
Finding the market values is the most difficult step.
- It is easier to look for properties that sold some time last year.
- You can then quickly compare their sale prices with their assessments.
- You should compare the level of assessment for your property with equity statistics.
- You probably will not succeed without this information.
Is the level of assessment for your property significantly higher than the Assessment to Sales Ratios (ASRs) for your comparison group (i.e., more than a few percent)?
You may not succeed in your appeal. In previous other appeals:
-
We did not reduce the assessments in similar circumstances.
-
For more guidance see common weaknesses in equity positions.
Ask yourself: Is it worth my time and expense to appeal?
You are finished evaluating this issue.
Review your analysis with BC Assessment. Do you and BC Assessment agree on how much your assessment should change?
If you both agree your assessment should change, ask BC Assessment to confirm they will issue a new assessment.
If you both agree that no change is necessary, then you do not need to do anything else.
You are finished evaluating this issue.
Do you want to appeal your property assessment?
- Your deadline is April 30th.
Final check:
See Common weaknesses in equity positions.
- Do any of these weaknesses apply to your analysis?
- If so, we suggest you re-examine your position. Unless you can get better evidence or support, you probably will not succeed.
- It is completely up to you if you appeal your property assessment. We hope this Guide has helped you decide.
You are finished evaluating this issue.
Introduction:
You may be concerned that a negative factor has reduced the value of your property. This could be:
- Traffic noise from a busy road;
- Your property is too steep;
- Your view is blocked;
- Water floods the property; or
- Other factors.
If this is your concern, continue with this issue.
If you are concerned about the condition of your own property (for example, it needs a new roof), see: there is a problem with my property or it is in poor condition.
Option before reviewing the issue: quick check on common weakness.
Questions for Issue e
Have you already appealed to the Property Assessment Review Panel by their deadline of January 31st?
We cannot assist you if you have not first appealed to the Property Assessment Review Panel by their deadline.
-
There is only one exception: something happened beyond your control that caused you to miss the deadline - see Appeal Guide.
-
Do not spend time using this Guide, unless we have told you that we may be able to handle your appeal. For further information: contact us.
Talk to BC Assessment about your concern. Are you satisfied with their response?
Instructions:
- Contact BC Assessment.
- Explain why the negative factor reduces your property value.
- Ask BC Assessment if they have already reduced your assessment for this concern.
- Both of you should listen carefully to each other's reasons.
If you both agree your assessment should change, ask BC Assessment to confirm they will issue a new assessment.
If you both agree that no change is necessary, then you do not need to do anything else.
You are finished evaluating this issue.
Do you have any evidence or support that shows the negative factor reduces your property value?
See researching evidence for a negative factor
There may be a problem with your assessment.
You will more likely succeed, if you have good support. The best support is:
-
Sales of similar properties that have the same negative factor; or
-
Evidence that shows how much the negative factor reduces your property value.
To help you decide whether or not to appeal, see common weaknesses.
You are finished evaluating this issue.
If you do not have evidence, you probably will not succeed. Ask yourself: is it worth my time and expense to appeal?
You are finished evaluating this issue.
Note:
It is completely up to you if you appeal your property assessment. We hope this Guide has helped you decide.
Researching evidence for a negative factor:
You need some evidence to show the negative factor reduces your property's value.
If you do not have this support, ask yourself: are you prepared to do more research once you appeal?
Suggestion 1 (simple method):
Look for sales of properties that are very similar to your property and also have the same negative factor (for example you both are on the same busy street).
- You can find sales on BC Assessment's website.
- The sale prices should indicate the value of your property with the negative factor.
- Compare your assessment to the sale prices:
- If they are close, then your assessment is probably correct.
- If your assessment is much higher than the sale prices, your assessment may be wrong.
Note: If your assessment is within 5% of the sale prices, then they are "close" and we probably would not reduce your assessment.
Suggestion 2 (more complex method):
Look for sales of properties that are very similar to your property except they do not have the negative factor that your property has.
- Their sale prices should indicate the approximate market value of your property (without considering the negative factor).
- Estimate how much the negative factor reduces your property value.
- you can ask an appraiser or real estate agent to give their opinion (preferably in writing).
- Subtracting the reduction for the negative factor from your approximate market value. This is your estimate of the adjusted market value.
- Compare your assessment to your estimate of the adjusted market value:
- If they are close, then your assessment is probably correct.
- If your assessment is much higher than the estimate, your assessment may be wrong.
Note: If your assessment is within 5% of the sale prices, then they are "close" and we probably would not reduce your assessment.
If you appeal, it is best that you find some market evidence to support how much the negative factor reduces your property value. This is complicated, so you might wait until after you appeal.
Common weaknesses (negative factors):
Let's look at common weaknesses that you should avoid. You can appeal now and then begin to strengthen your support. However, if you cannot provide good evidence, then you may not have a strong case and it may not be worth your time and expense to appeal.
No evidence to support your arguments:
- Make sure you provide your own evidence to show the negative factor reduces your property value.
- We will not do the research for you or BC Assessment.
Even we agree that buyers may pay less for your property, you still need to show how much less.
Listings:
Listings of properties for sale are not good evidence on negative factors:
- The problem with a listing is we do not know the property's selling price until it sells. The selling price might be quite different from the asking price in the listing.
- You should look for sales of properties that are very similar to your property. See researching evidence for a negative factor.
Wrong method:
If you are estimating how much the negative factor reduces your property value:
- Do not subtract this amount from the assessed value. BC Assessment may argue the assessment already takes into account the negative factor.
- It is better to find the market value of your property (assuming it did not have the negative factor). Then, subtract the amount for the negative factor. See researching evidence for a negative factor.
Before you start:
You can make this comparison as first step to see if there may be a problem with your assessment. But, you will usually not succeed with this argument:
- There may be good reasons why your assessment changed differently compared with other assessments. See common weaknesses in comparing average changes.
- Best way of getting better support: review market value using common methods.
Questions for Issue f
Have you already appealed to the Property Assessment Review Panel by their deadline of January 31st?
We cannot assist you if you have not first appealed to the Property Assessment Review Panel by their deadline.
-
There is only one exception: something happend beyond your control that caused you to miss the deadline - see Appeal Guide.
-
Do not spend time using this Guide, unless we have told you that we may be able to handle your appeall. For further information: contact us.
Which properties are you comparing with?
Is your smaller group of properties unique in some important way compared with other properties in your area?
For example: unique view, waterfront properties.
You will probably not succeed with this argument.
-
This is because the market values of all properties do not change at the same rate.
You are finished evaluating this issue.
Note:
If you want to compare your assessment with all properties in your neighbourhood or area: go to next question.
Did your assessment go up significantly more than the other properties you are comparing with?
Differences of less than 5% are often not considered significant. See examples of changes in assessments.
Instructions:
- Calculate the percentage difference between your assessment last year and this year.
- Compare this to the percentage change for the other properties.
- Be careful to look at the same group of properties. If your property is a single family dwelling, look for the average change for single family dwellings rather than for strata properties.
Statistics on assessments changes are posted on BC Assessment’s website.
Examples of changes in assessments:
Example 1:
- My assessment increased from $300,000 last year to $330,000 this year, a 10% increase.
- Other assessments on my street increased 1 to 2% and none increased by more than 5%.
There is a significant difference between the change in your assessment and the average on your street.
Example 2:
- My assessment stayed the same as it was last year.
- The assessments of homes in my town dropped on average by 12%.
There is a signficant difference.
Example 3:
- My assessment increased by 4%.
- My three neighbours increased by only 1%, 2% and 2.5%.
The difference is small and not significant.
Note: It is probably more accruate to look at all similar properties in your neighbourhood or area.
It is possible that your assessment is too high. However, there may be good reasons why your assessment changed at a higher rate. See common pitfalls in comparing average changes.
You have three options:
-
Talk to BC Assessment about your comparisons with other assessments. They may have a good explanation for the differences. Or, they may agree to reduce your assessment.
-
Do more research. We recommend you review market value using common methods.
-
Appeal now: submit your appeal.
Note:
If you talk to BC Assessment and are not satisfied, we suggest you look for stronger support for your arguments. Option 2 will help you decide whether or not to appeal.
The change in your assessment is similar with other properties.
Your assessment is an estimate of your property's market value. It could be worth a little less or a little more than your assessment.
For these reasons, usually we would not reduce your assessment.
You are finished evaluating this issue.
Note:
It is completely up to you if you appeal your property assessment. We hope this Guide has helped you decide.
Common weaknesses in comparing average changes
Comparing how other assessments changed might indicate a problem with your assessment. Usually you will not succeed with this type of argument, because:
All assessments will not change at the same rate:
The key is properties should be assessed at their market values.
Between two years, the market values of different properties can change by different amounts.
Last year's assessment may have been wrong:
We do not know if last year's assessment was correct. For example:
- Last year's assessment could have been too low.
- When you calculate the difference between last year and this year, your assessment may have gone up more than other properties. BUT, this year's assessment might be correct.
Before you start:
You can make this comparison as first step to see if there may be a problem with your assessment. But, you will usually not succeed with this argument:
- There may be good reasons why your assessment is different from other assessments.
- Best way of getting better support: Review market value using common methods.
Questions for Issue g
Have you already appealed to the Property Assessment Review Panel by their deadline of January 31st?
We cannot assist you if you have not first appealed to the Property Assessment Review Panel by their deadline.
-
There is only one exception: something happened beyond your control that caused you to miss the deadline - see Appeal Guide.
-
Do not spend time using this Guide, unless we have told you that we may be able to handle your appeal. For further information: contact us.
You are looking at other assessments. Did these properties sell recently (this year or last year)?
Instructions:
You can see if these properties sold on BC Assessment's website.
You probably will not succeed by comparing your assessment with other assessments:
-
The other assessments might be wrong.
-
It is possible that your assessment is completely correct.
We suggest two options for finding better evidence:
Option 1: If you are concerned that your assessment is too high
-
Your property should be assessed at what it was worth around July 1 last year.
-
If you think your assessment is wrong, you can review market value using common methods.
Option 2: If you are concerned that your assessment is unfair
-
Your assessment should be fair compared with similar properties in your area.
-
This means: if most similar properties are assessed below their market values, then your property should also be assessed under its market value.
-
If this is your concern, you can review fairness of my assessment.
You are finished evaluating this issue.
Your property should be assessed at what it was worth around July 1 last year. This is your property's market value.
-
You could continue to compare your assessment with other assessments. But, usually you will not succeed because the other assessments might be wrong.
-
You have found some sales which might be very helpful. Sales of similar properties are the best evidence.
-
We recommend you look at the sales in more detail: by using common methods.
You are finished evaluating this issue.
Introduction:
Your assessment will have separate values for the "land" and "improvements". Improvements may be a house, garage or other buildings. Review this issue if you are concerned about an increase in your improvements assessment.
Questions for Issue h
Have you already appealed to the Property Assessment Review Panel by their deadline of January 31st?
We cannot assist you if you have not first appealed to the Property Assessment Review Panel by their deadline.
-
There is only one exception: something happened beyond your control that caused you to miss the deadline - see Appeal Guide.
-
Do not spend time using this Guide, unless we have told you that we may be able to handle your appeal.For further information: contact us.
Look at your total assessment, including land and improvements. Do you think the total assessment is more than what your property was worth?
Note: you should look at the market value as of July1 last year.
There may be a problem with your assessment. We recommend you look for stronger evidence by reviewing market value using common methods.
If you just look at your improvement assessment, you probably will not succeed:
-
You are taxed on the total assessment (both land and improvements). If you appeal, we will concentrate on your total assessment.
-
It is possible that the assessed value of your house is too high. But, it is also possible that your land value is too low.
You have finished evaluating this issue.
Note on improvement values:
Sometimes improvement values can go up, even if the buildings stay complete the same.
-
This can happen when the costs to build houses increase. Buyers may then pay more for older improvements.
-
Your assessment should be at your property's market value. If real estate values increase, you should expect your total assessment to increase. When BC Assessment allocates this total value to land and improvements, both may increase.
You do not think your total assessment is too high (or above its market value). We would not reduce your assessment because we must look at the total assessment.
-
You are taxed on the total assessment (both land and improvements).
-
It is possible that the assessed value of your house is too high. But, it is also possible that your land value is too low.
You are finished evaluating this issue.
Note: It is completely up to you if you appeal your property assessment. We hope this Guide has helped you decide.
Just because there were no sales in your area, does not mean your assessment cannot increase.
-
Your assessment should be at what your property was worth around July 1 last year. This is called its market value.
-
Even without sales, market values can increase. There may be sales in another neighbourhood that show that values increased in your area.
-
The best evidence is the sales of similar properties.
-
You may need to look farther away from your neighbourhood to find sales. We recommend you review market value using common methods.
You are finished evaluating this issue.
Questions for Issue i
You believe your assessment is higher than what your property is currently worth. This may mean your assessment is too high. However, you probably will not succeed with this argument, because:
- Your assessment should be at what your property was worth around July 1 last year, not what it is worth now.
- The value of your property may have changed since last July.
It is better to find similar properties that sold closer to July last year. We recommend you review market value using common methods.
You are finished evaluating this issue.
Questions for Issue j
Your assessment is based on your property’s market value. Your local government calculates your taxes based on your property assessment. We cannot help you reduce your taxes.
- If your assessment is inaccurate or unfair compared to other properties, you can look at the other issues in this Guide to help you decide if you want to appeal.
We have no power to deal with taxes.
Questions for Issue k
We cannot help you with this issue.
- We do not supervise BC Assessment or the first level of appeal - the Property Assessment Review Panel.
- We are completely independent from them.
- We have no power to evaluate or comment on how they behaved or how they treated you.
We can only decide if your assessment is correct and accurate.
If you are unhappy with how you were treated, you have three options:
For concerns about BC Assessment:
Contact the Assessor in your local office or their headquarters in Victoria
For concerns about Property Assessment Review Panel:
Contact the Administrator
For concerns about either organization:
Contact the Ombudsperson
Questions for Issue l
This Guide does not cover all possible issues. We may be able to help you with some other issues.
- For further information on: what you can appeal.
- For more questions: contact us.