In the preceding 30 days, three individual prospective buyers have indicated to me that they do not think to pay a lot more than the tax value given to the property. Why is this? Let me attempt to answer this question as best as a Vancouver real estate agent could: People probably think that the price that is assessed for tax reasons is the same as what the house is actually worth.

As a result of this messup, real estate agents have commenced to include phrases like “price is below the assessed value” in their listings. We at REMAX Vancouver have not fallen to that schema althought I have seen a few… As a result of these statements, houses that are priced lower than the assessed value are viewed as bargains. Unfortunately, this might not always be accurate.

The assessed value of a home is an amount that is determined by a tax official (British Columbia employs a provincial crown company known as Vancouver BC real estate Assessment) in order to calculate taxes. As soon as this assessment is made, the entity responsible for taxation, including the City of Vancouver, then sets its tax rates according to the assessment.

Fair market value means the price that an intelligent, free-thinking, and interested client would consider paying to the person who owns the property, who is not required to sell the house if he or she does not want to. Prior to putting a house up for sale, a real estate representative is going to track down several houses that are similar to that of the seller that have sold in the past few months. Calculating these comparisons, the representative shall then advise the owner on what the price of the house has to be. When a buyer and seller sign off on a purchase price, this marks the fair market price of the house. This depicts the reasons why you want to compare similar houses’ selling prices before telling the owner what you’ll pay. This shall ensure you know that the house is priced fairly.