Why Your Property Assessment Should Not Be Treated as Market Value
Every January, provincial and municipal assessment notices are released across Canada. Homeowners scan the number, compare it to last year, and often assume it reflects what their home would sell for in today’s market. It is an understandable reaction, but assessments were never designed for that purpose, and the gap between an assessed value and a true market valuation can be significant.
If you have not checked recently, your updated provincial assessment is now available. In British Columbia, for example, homeowners can view their 2026 assessed value by entering their address on the BC Assessment website.
Understanding the difference between assessed value and real market value matters, especially in a market where prices can shift meaningfully within months.
Why Assessment Notices Fall Behind Real Market Conditions
Across the country, assessment authorities rely on consistent methods. These processes work well for municipal taxation, but they have clear limitations when applied to real estate decision making.
Old market data
Assessed values are usually based on sales data from a valuation date that may be six to eighteen months old. Markets can rise or soften quickly, and assessment notices do not adjust fast enough to reflect current conditions.
No direct inspection of your property
Assessors do not walk through your home. They do not see upgrades, additions, improvements, or changes in overall condition. Unless renovations were formally recorded through permits, they are not incorporated into the assessed value.
Mass appraisal rather than individual valuation
Assessment models group homes based on broad similarities. Buyers do not evaluate homes this way. They respond to layout, finish quality, natural light, outdoor space, curb appeal, and the unique details that shape real market prices.
A system built for taxation, not pricing homes
The purpose of a property assessment is to allocate municipal tax responsibility fairly across properties. Consistency is the priority. Precision at the individual property level is not.
What This Gap Looks Like in Practice
The difference between an assessment and a current market valuation can be surprisingly large.
A recent example involved a property that was professionally appraised at $575,000 through a full inspection and a review of comparable sales over the preceding ninety days. The newly released assessment placed the property closer to $515,000. Industry professionals view this type of discrepancy as normal. Lenders, appraisers, and Realtors rely on current sales data rather than assessment notices.
What Homeowners Should Keep in Mind
When you have recently purchased a home
A lower assessment does not mean the market value of your home has fallen. It often reflects the fact that assessments are based on older information.
When you are preparing to sell
Using your assessment as a pricing guide can lead to unrealistic expectations. Buyers and their agents anchor their view of value to recent comparable sales, not your assessment notice.
When you are buying a home
Relying on assessment values during negotiations can create unnecessary friction. Sellers base their pricing on real time market activity, and assessments rarely align with those numbers.
When your assessment decreases
A lower assessed value may reduce your property taxes. While that can be a welcome outcome, it does not indicate a decline in what your home would sell for in the current market.
The Takeaway
Property assessments serve an important municipal function, but they were never intended to guide buying, selling, or refinancing decisions. Their structure and purpose, along with the timing of their valuation dates, limit their usefulness beyond understanding how your property fits within your local tax base.
If you want an accurate picture of your home’s current market value, the most reliable sources are up to date comparable sales, professional appraisal work, and advice from someone who understands the nuances of your local market.
Disclaimer: The information in this article is provided for general educational purposes only and does not constitute financial, legal, or tax advice. Readers should consult qualified professionals before making decisions based on this content. View our full Disclaimers & Privacy Policy →
Every January, provincial and municipal assessment notices are released across Canada. Homeowners scan the number, compare it to last year, and often assume it reflects what their home would sell for in today’s market. It is an understandable reaction, but assessments were never designed for that purpose, and the gap between an assessed value and a true market valuation can be significant.
If you have not checked recently, your updated provincial assessment is now available. In British Columbia, for example, homeowners can view their 2026 assessed value by entering their address on the BC Assessment website.
Understanding the difference between assessed value and real market value matters, especially in a market where prices can shift meaningfully within months.
Why Assessment Notices Fall Behind Real Market Conditions
Across the country, assessment authorities rely on consistent methods. These processes work well for municipal taxation, but they have clear limitations when applied to real estate decision making.
Old market data
Assessed values are usually based on sales data from a valuation date that may be six to eighteen months old. Markets can rise or soften quickly, and assessment notices do not adjust fast enough to reflect current conditions.
No direct inspection of your property
Assessors do not walk through your home. They do not see upgrades, additions, improvements, or changes in overall condition. Unless renovations were formally recorded through permits, they are not incorporated into the assessed value.
Mass appraisal rather than individual valuation
Assessment models group homes based on broad similarities. Buyers do not evaluate homes this way. They respond to layout, finish quality, natural light, outdoor space, curb appeal, and the unique details that shape real market prices.
A system built for taxation, not pricing homes
The purpose of a property assessment is to allocate municipal tax responsibility fairly across properties. Consistency is the priority. Precision at the individual property level is not.
What This Gap Looks Like in Practice
The difference between an assessment and a current market valuation can be surprisingly large.
A recent example involved a property that was professionally appraised at $575,000 through a full inspection and a review of comparable sales over the preceding ninety days. The newly released assessment placed the property closer to $515,000. Industry professionals view this type of discrepancy as normal. Lenders, appraisers, and Realtors rely on current sales data rather than assessment notices.
What Homeowners Should Keep in Mind
When you have recently purchased a home
A lower assessment does not mean the market value of your home has fallen. It often reflects the fact that assessments are based on older information.
When you are preparing to sell
Using your assessment as a pricing guide can lead to unrealistic expectations. Buyers and their agents anchor their view of value to recent comparable sales, not your assessment notice.
When you are buying a home
Relying on assessment values during negotiations can create unnecessary friction. Sellers base their pricing on real time market activity, and assessments rarely align with those numbers.
When your assessment decreases
A lower assessed value may reduce your property taxes. While that can be a welcome outcome, it does not indicate a decline in what your home would sell for in the current market.
The Takeaway
Property assessments serve an important municipal function, but they were never intended to guide buying, selling, or refinancing decisions. Their structure and purpose, along with the timing of their valuation dates, limit their usefulness beyond understanding how your property fits within your local tax base.
If you want an accurate picture of your home’s current market value, the most reliable sources are up to date comparable sales, professional appraisal work, and advice from someone who understands the nuances of your local market.
Disclaimer: The information in this article is provided for general educational purposes only and does not constitute financial, legal, or tax advice. Readers should consult qualified professionals before making decisions based on this content. View our full Disclaimers & Privacy Policy →
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