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Michele Talks Assessments and Tax
January 18, 2022 | Posted by: Michele Cummins
Warning! ;) This is a digitally automated transcript of the show so there will be mistakes throughout - including the spelling of Michele's name!
it's time for the company's Real Estate Group show with local realtor Rockstar Michelle Cummings and myself Curtis Pope. Good morning, Michelle.
Michele Cummins - PREC:
Good morning. You're the rock star Curtis cope?
Curtis Pope:
No, I used to have the hair for it. But no, not anymore.
Michele Cummins - PREC:
Hey, you're the drummer. Rock star kids.
Curtis Pope:
Yeah, that's true. I do have a I have a want to be rock star son. So we can go with that, I guess?
Michele Cummins - PREC:
Well, I want to say today we have and we were thinking about talking about it last week. But now I think everyone's had the time to receive all their BC assessments. So we're gonna talk all about BC assessments maybe into the second session, but we do have something else. Ooh, it's the ugly talk in the room. Right now everyone's talking about this horrible other tax another tax that the government wants to implement? Or we're going to talk about that in the second session, but you got your BC assessment?
Curtis Pope:
I sure did. Yeah, no, I looked at mine right away and then went online and you know, stupid routed all my friends and family members houses to
Michele Cummins - PREC:
that's just one of the website, BC assessment.ca. There's actually some fun information you can find there. And if you scroll down, and you actually pop out of the map and click your neighbor's property and have a look at theirs, and you can hit recently sold properties and all be at all of my it, you know, evaluations that I do and everything? I I do have a quick look there. I definitely don't rely on it. Because Wow, do they they don't assess it assess it. They don't do it like a realtor or an appraiser would but but it is interesting to see what sold recently and all that good stuff on the site.
Curtis Pope:
Absolutely. I mean, it's it's it's mind boggling how much things went up here in the Fraser Valley in just the last year?
Michele Cummins - PREC:
Oh, yes. And actually, I've broke it down. And I know last week, we had our monthly stats show and we actually went year over year everywhere. But now I'm gonna I see what the all the assessments in the different areas have gone. And we're going to compare it with school, a lot of them with what the actual true market value, how it's gone up compared to the BC assessment value, which will be interesting. Yeah, so without further ado, let me just write that time. Okay. So why a big increase in your home's value doesn't always mean a big property tax hike. I'm going to answer some questions that show that a lot of people have everyone. Well, not everyone. I shouldn't say that. Most people a lot of people think that if their assessment values go up their property taxes automatically go up. And we did have manager of the BC assessment out of Abbotsford in our show was that two years ago, Curtis or was it about three now?
Curtis Pope:
I think we're I think we're probably getting close to three years ago, I think.
Michele Cummins - PREC:
Yeah, two and a half or more. Yeah. So if anybody wants to go back to that episode, it is on country 1.1 websites and as well as mine under podcasts or radio show I mean, and or go on our podcast and have have a look or listen to that show, however, it some things to know about your home's assessed value and what that does or doesn't mean for your listing price or property taxes. What we're gonna talk about right now, while seeing a change in your home's assessed value might make your eyes grow wide, there's no reason to speculate or panic. Some worry that a big jump into homes assessed directly translates into that higher property taxes. I mean, that's what it seems like has been on the street and what we've all heard before. But while it can be the case, sometimes it's not quite that simple. Or what if you're thinking of selling? Does the assessment give any indication of what your home might fetch on the market? Not quite that either. Here are some things to know about your home's assessed value and what that does or doesn't mean for your listing price or property taxes. So the first question, Does my home assessed value impact what my home might sell for? Well, not necessarily. An echo of The Economist with the Real Estate Board of Greater Vancouver, Keith Stewart says. So both the assessed value and its listing price are really just guideposts that are hopefully in the neighborhood of what the final value is going to be. Today the answer to the question everyone has what my home worth? The answer is, we don't truly know until you test the market. How many evaluation appointments have I been in when you know of course they ask What's my home's value worth, and I can give them a minimum, I would definitely not sell it under this price. But that's not the price it's gonna sell for, it's gonna sell for higher. But nobody knows that until you actually give it the exposure, put it on the marketplace, show it to the best ability that it can let every single buyer and realtor know about your property by not just the MLS realtor.ca, but so many different avenues, and you will have droves of buyers through and you will have should have a lot of multiple offers. I think recently in the last week, at least the highest number that I heard from a local realtor who got offers was 41 offers for one house.
Curtis Pope:
That's a lot of offers to go through holy cow.
Michele Cummins - PREC:
Can you imagine, man and think that
Curtis Pope:
somebody probably just added somebody out by just the smallest of margins to to get the place?
Michele Cummins - PREC:
Exactly. That's a lot of offers. I don't know if they just priced it initially way too low. And that's why there were so many, because that's a lot. But I you know, last week I also heard of somebody getting over 30 offers so
Curtis Pope:
we never call one of the houses we put a bid on when we were looking for our house the first we put a bid on there was 21.
Michele Cummins - PREC:
Yeah, that and that is extreme. takes hours to go through all the fine lines of all those offers. So another question is what can my home's assessed value tell me about how it might do on the market and can I use it to determine my listing price? Well, the assessed value of the home is determined based on its condition, the market and other factors current as of July 1 of any given year, it essentially tells you what your home may have sold for May, all caps May. For on July 1 of the previous year. However, assessments are mailed out to homeowners in January of the following year, which means the state of the property and market conditions may have also changed since the July assessment. As a result, what a home could have sold for wouldn't have likely also have changed. Of course, another question a lot of people have do assessments mean different things or for condos and townhouses and detached homes? Well, VCs essence database will often have more accurate information for newer properties such as condos, because older properties like detached homes, if we're speaking older, new may have had work done that isn't noted in the database. If the city doesn't send the information in to BC assessments about permits being approved, or if individuals did work without the required permits, they wouldn't know. And typically in Townhouses and condos, they pretty much say the same, but with detached properties, you could build a detached shop, you didn't have all those greenhouses, you can, the landscaping could have a couple $100,000 in it, or more. I mean, there's all sorts of other grades that a detached property could have that's a bit harder to put into a townhouse, or condo. And that's why there's so many different variables that BC assessments may not know about your property, it may not have been sold for years and years, there can be somebody who has lived in there for 45 years. And if it was sold last year, it would actually have a higher assessed value because of the way the percentages go year over year. And if they the CPC assessments never knew about any upgrades. I've seen properties at showing 140,000 or whatnot, 100 assessments, but they're worth you know, over a million. So definitely look at all those different aspects. And current, you may have to keep me on time today because I wasn't paying attention to time and you know how I like to talk?
Curtis Pope:
I'm well aware, I am well aware of what you can do a time. You've still got yourself a good three, three and a half minutes. Oh,
Michele Cummins - PREC:
good because I have a lot to fill in for that. Three minutes may be structured to four No,
Curtis Pope:
that would be unlike you.
Michele Cummins - PREC:
Often the database that the BC assessment also uses is based on what information is offered when a property is listed for sale through the MLS. But what if it was an exclusive listing? What if it was a private sale or you know, then they wouldn't have that information. But they do pay attention to the MLS. So that's why if you recently sold sometimes it can jump a bit higher than then would just average overall along with the rest of your municipality or city. So the BC assessment website shows comparable homes and recent sales in your area, as you mentioned before Curtis earlier, but is that a tool? Or is it a tool my real estate agent can use to decide it listing price? Well, well assessed values don't directly translate into a home listing or selling price buyers and sellers do check the BC assessment website most of them do for information that can help in a decision to buy or sell. So as far as when you're looking at selling or buying and if you want to look at these desktops You for Your property type, for other reasons sales and just for things that are just in your neighbor in the neighborhood that have turned over. If you notice anything particular in there that it's great, publicly accessible data, it's easy DC assessment.ca, or what's the assessed value punch in the address and you'll see it there. It's also a place where property doesn't show as sold in the past three years, again, because maybe it was a private sale, or the realtor involved, it was an exclusive sale, then it'll show up on the BC assessments website for that property, but it wouldn't be on the MLS system for realtors to know. So that's why I like checking that history as well on there, and you may do. So with that. Let's just go on our break here and we'll come back with more.
Curtis Pope:
Look at you, you're actually almost bang on time. Once in a while it does happen. Well, people might want more information about assessments about what you do as a realtor and things like that. Where can they
Michele Cummins - PREC:
go? Well, they can go to Michelle comm and stop
Curtis Pope:
we're back with more right after this.
Michele Cummins - PREC:
She
Curtis Pope:
Eberbach the second number two of the company's Real Estate Group show with Michelle Cummings and myself Curtis Pope now I guess we still have some some assessment to talk about here.
Michele Cummins - PREC:
Assessment assessment assessment. Actually, it should be tax tax tax. Right? That's right. So does a big increase in my home's assessed value mean a big hike in my property tax? Well, a common misconception is that a jump in your home's assessed value means you'll be deemed come tax time. But in reality, it depends on what the change in your home's assessed value is in relation to other homes in your property, class and municipality. So taxes decrease if your properties. Yes. Did you hear that decrease? That's true. Sometimes they do in this case, not very often.
Curtis Pope:
I'd like to see that happen just once.
Michele Cummins - PREC:
I just try to find a comparable probably none for many years. But properties assessment change is lower than the average change for your property class. Your property taxes will actually likely decrease likely is very like
Curtis Pope:
A likely story, Michelle is what I'm saying.
Michele Cummins - PREC:
That's what they say. Taxes remain the same. If your property's assessment change is similar than the average change for the property the class that your property is in and your property taxes will likely remain the same. And then taxes increase Well, if your property's assessment change is higher than the average change for your property class, your property taxes will likely increase your property class and the average assessment value change for your property class are both listed on your assessment. Notice, of course, there are other factors at play as well. And it will depend on the property tax situation in your specific municipality. But as a guideline, there's no need to panic right off the bat. If you see your home's assessed value increase. I did have a few phone calls last week, where clients and the general public we're very, very concerned about that. So let's now chat about how much the BC assessment values came up overall, from the year prior. So we're talking from 2020 July 1 to 2021 July 1, the current assessed values we all have. So in theory, it went up 34% For detached properties for their strata properties, that's including all Townhouses and condos recalling strata, it went up 18% Now in White Rock, a detached went up 27% But you know, in actual fact, the market value in White Rock went up 29.4% strata for BC assessment in White Rock went up 17% But in actual fact, the market value year over year, had gone up 29.6% in Delta BC assessment went up 33% But in actual fact that's detached but in actual fact, detached and delta went up year over year as of last month staff and you weighs 48% strata in Delta went up BC assessment 13% The natural market value went up 38% And the township of Langley BC assessment detached homes went up 34% And for strata in the township of Langley went up 24% for BC assessment City of Langley, BC assessment went up 39% For detached homes and up 20% For strata city of Abbotsford went up 38% For detached homes but an actual market value added for detached when a 48.4% and strata for BC assessment went up 21% In Abbotsford, but actual market value went up 37.8% So you can see the rhythm that the market values overall for last year went up a lot more than the actual BC assessment. in Chilliwack. The BC assessment for detached homes went up 40% in Mission detached BC assessment went up 36% But actual detached homes, market value went up 51.2% admission and for district of Kent, the BC assessment for detached homes went up 35% And in HK detached homes BC assessment went up 45% and Harrison hot springs went up 35% So in everything, though, I have noted that there, you'd be surprised hope. Can you believe Curtis that ABC assessment and Hope went up? 45%?
Curtis Pope:
Yeah, no, I can believe that. Because, you know, there's a lot of nice houses that have been built around hope in the last few years. It's an area that's, that's kind of growing in a strange way. Because I guess you know, it's not that far to drive to Abbotsford or Chilliwack to work and you can have a bit of a quieter life. So once you're beyond hope you're beyond hope, but without hope you're in a good place.
Michele Cummins - PREC:
Yeah, the mountains and they've really built up. Richard was surprised I've been oh my gosh, they haven't save on food, save a Starbucks. They've got so much that he's all Oh, what was what is Hope has, it's actually built up quite a bit in the mountains and the river and the lake. And it's a nice community. And you're right about the newer construction in new neighborhoods. I've just sold one this last year. Beautiful, beautiful rancher with a walkout basement. Gorgeous, right by the trails. And yeah, it's quite a nice place. So I wanted to chat about this horrible, horrible thing that we're all very upset about that the government is wanting to implement. And it's called another Tap Home Equity tax.
Curtis Pope:
Have you heard of it? I have heard you know, whenever I hear the word tax, you know, it just, you know, great. So my final nerve.
Michele Cummins - PREC:
Absolutely. So they're trying to slow down prices. But if you want to lower prices on a product, you make more of that part.
Curtis Pope:
Yeah, you need to make to get prices lower.
Michele Cummins - PREC:
Exactly. You don't add more costs, you give more products, make more inventory, it doesn't work out, you know that the property purchase tax, they tried that they implemented that I think it was in the 80s for the same reason to try to slow down pricing back then and lower prices, but they never got rid of it. And they haven't been like they're just adding tasks, adding tax, adding costs, adding costs, and that's never worked. It's never proven to work.
Curtis Pope:
What's the added tax, it never goes away. I mean, income tax was only added to help fund the First World War. Here we are 100 years later, we still have income tax.
Michele Cummins - PREC:
Exactly. And it's just putting, you know, making a stand being a voice and do everything we can to make sure it doesn't get implemented. You know, Vancouver property back when they implemented the property transfer tax was worth $150,000. That tax didn't work like Wow, look how prices have gone up. So it's just another money grab from the government this reason? And it's just an excuse to make more money for them for it. No, it's not right. It's not a good idea. It's not going to lower prices. We need to get rid of the red tape on builders get rid of the red tape against development and we need more housing bill and we have we actually have plenty of land to do that if we do it smartly. And I just I really that is the answer. So from the speculation, tax and vacancy tax to the foreign buyers tax and all the other taxes abuse these current measures designed to improve housing affordability haven't managed to slow a market that's often considered a cash cow. Now West Coast thinking our use a surtax on equity may be part of the solution. Now not it just can't happen. So there is a lot of people talking about this. So if people want more information, a lot of the real estate industry of course, there's a lot of different sectors who have a lot of advice about this the economy and everyone else. So I would, if you have a say please have a say. So with that I want to go into some new listings because listings are at all time low. So whenever there are some on the market, people's ears open up so I've got a pre construction condo actually, that is coming out not to be completed until 2024. But it's been sold this three bedroom, two bath room, almost 1000 square foot with a really large stack in Mission buildings called Ren and Raven. And again, completion dates in 2024 15%. Down the price is 605,000. If you don't want to keep it before completion, you can sign it as well. And the markets supposed to go up they everyone says this year so or you can rent it out, or you can have it for your young kids who may be of the age in a couple years to have their own home. So that is a beautiful listing that just came out and then I have this gorgeous acreage. It's 2.32 acres. So over two acres, it's a five bedroom, five bathroom. It's only 14 years old, and it's off Gladwin road, and if the size is over 6100 square feet it's a two story plus a full walkout unfinished basement so you can finish it with to your heart's content, maybe rec room, maybe a suite. And there is a beautiful a detached large workshop. I'm not going to call it a garage because it's a workshop. There's high high bay window. This property is great for truckers. It is it is really nice. It's long, so you've got this just depth to it. And it's perfect for horses as a hobby farm. It's got skills, it's got paddocks, it's in a really nice area and the price is 2,899,000. And the next week I have getting on the market actually Monday it's going to hit the market. So coming soon, one in Agassi. And actually it's a good size lot. The house is built in 1969. It's been updated. Lots of updates, new windows have so much they've got AC, it's open concept. It's got great vaulted ceilings, it's a single garage, lots of parking for RVs, long, RVs boats, huge backyard, raised garden beds, it's a over 10,000 square foot lot. The house is a split entry house, and it's a 2300 square foot all finished beautiful homes. It's gonna it's priced at 975 on on Monday, so keep an eye on that. And I'm going to end with a quote of the week. It is success is the sum of small efforts repeated day in and day out by Robert Collier.
Curtis Pope:
And no Truer words have been spoken very, very cool. All right. Well if people want more information about what you do as a realtor, maybe they have questions where can they go? So coming up and join us again next week when we will talk real estate in order to unlock your real estate potential on the show where real estate is maximized. Thanks for listening
If you missed last weeks episode where Michele and Curtis Chat with Ishpreet from RDM Lawyers and stats!, please go back and take a listen - it's well worth it!