By now most of you have received your most recent 2019 B.C. Assessment. Is this useful? How are the figures determined? Do they simply take an average of recent sales right before July 1, 2018, cut off? I can go on about this and surely there are more questions about the methodology and validity behind how the valuation is conducted. While this valuation provided by BC assessment has always been questioned and will continue to raise eyebrows for years to come for both buyers and sellers, you must remember ONE thing. They are HISTORICAL VALUATIONS at a point in time. Yes, that’s right a point in time and they DO NOT reflect current market pricing and conditions.
Current market pricing or mark-to-market valuation, a term used by the finance folks often reflect what’s really happening in our local real estate market. Similar to the stock markets, the market speaks and buyers and sellers will exchange something of value for a given price. This also means a seller who wants $2 million for their home and a buyer who only wants to only pay $1.8 million will not result in a deal getting done. 2019 will be a very interesting year for B.C homeowners and investors.
What exactly do I mean by the “market speaking” to you? As an example, if we use strata-fied products, better known as condos or apartments, market pricing is based on a number of different factors. One huge driver is a dollar ($) per square foot. Other factors which are very personal in nature could be direction of the unit, views, size of the balcony, additional parking stalls, storage lockers, etc. I can go on. Specifically, with this product type market pricing is easier to obtain and digest. Valuations can also be better estimated based on recent sale activity in a given building and area.
The market is speaking to us today and if you are in the market to either BUY or SELL, I’m more then happy to sit down with you and discuss both pricing and an optimal strategy that suits your family’s needs. Remember, everyone’s situation is unique and different and I’m here to help you WIN!
ABOUT THE AUTHOR:
Brian is a Realtor and a Chartered Accountant (CPA, CA). He has over a decade of experience delivering on various audits and risk advisory engagements with both public and private organizations. Brian also was a Product Manager at a local software company and ran his own consulting business prior to converting his side hustle and real estate passion of 16 years into work. He has personally lived and breathed how a person buys and sells a home more than the average person does in a lifetime. Brian is a resident, owner, and investor. Brian is married happily to his wife Katharine and has a daughter.
Disclaimer: This communication is not intended to be and should not be used as investment advice. If you want advice please seek a licensed professional for investment advice. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official position of Oakwyn Realty Downtown Ltd.
