Your Home's Assessed Value vs. Its Actual Market Value
That number on your BC Assessment notice? It's probably not what your home is worth. Here's why, and how to find the real number.
The Number That Confuses Everyone
Every January, BC homeowners receive a property assessment notice from BC Assessment. It shows a dollar figure for your property. And every January, homeowners across Greater Victoria either celebrate ("My home went up!") or panic ("My home went down!") based on that number.
The truth is, that number is useful for one thing: calculating your property taxes. It is not a reliable indicator of what your home would sell for today. The two figures, assessed value and market value, are calculated differently, updated on different timelines, and serve entirely different purposes.
How BC Assessment Works
BC Assessment determines your property's value based on its estimated market value as of July 1 of the previous year. So the assessment you receive in January 2026 reflects what BC Assessment believes your home was worth on July 1, 2025, six months earlier.
They use mass appraisal techniques, analyzing broad sales data across neighbourhoods to estimate values. They do not tour your home, they don't know about your renovations (unless you've pulled permits), and they don't account for the unique features that make your home more or less desirable than the one next door.
How Market Value Works
Market value is what a willing buyer will pay for your home in the current market. It's determined by recent comparable sales in your area, the current supply and demand balance, the specific condition and features of your home, and buyer perception.
A comparative market analysis (CMA) prepared by Brad considers all of these factors. It looks at what similar homes actually sold for in the past 30-90 days, what's currently competing with your home on the market, and what adjustments to make for differences in size, condition, lot, and location.
Why They're Almost Never the Same
- Time lag: Your assessment reflects a value from 6-18 months ago. In a market that moves 5-10% per year, that's a meaningful gap.
- Mass appraisal vs. individual analysis: BC Assessment paints with a broad brush. A CMA looks at your specific home in your specific micro-market.
- Improvements and condition: BC Assessment doesn't know you spent $40,000 on a kitchen renovation. They also don't know your neighbour's foundation is cracking. These details matter to buyers but don't show up in assessments.
- Market momentum: If the market has heated up since July, your assessed value is understated. If it's cooled, your assessed value may be overstated.
Real Examples from Victoria
It's common to see homes in Oak Bay assessed at $1,200,000 selling for $1,400,000 because of the neighbourhood's limited inventory and strong demand. Conversely, a condo in a building with known strata issues might be assessed at $500,000 but only attract offers of $440,000 because buyers are aware of upcoming special assessments.
The assessed value gives you a ballpark. The market value gives you the answer.
Brad's advice: "Never base a selling decision on your BC Assessment. And never let a buyer use your assessed value to justify a low offer. Your home's real value is determined by what comparable homes have actually sold for, not by a number calculated months ago."
Want to Know Your Home's Real Market Value?
Brad will prepare a free CMA based on current comparable sales, not your assessment. Real data, no guesswork.
Get Your Free EvaluationBrad Sawyer is a REALTOR® with Royal LePage Coast Capital Realty, born and raised in Victoria, BC.