If you think a 12% annual return on your money is good, here's the first time insider secret on HOW TO set your sights on 23% from your mortgage.

Many lookers are operating under the misnomer that a home’s purchase price needs to be just above its tax assessed value. In other words, they feel that tax assessed is the identical thing as “what a home is appraised.” This is certainly not the case, but just this month I’ve met no less than three potential buyers who refused to offer anything higher than the tax assessment value on homes they truly loved.

It’s because of this misconception that some realtors write things such as “priced under assessed value” etc in their marketing remarks, and in turn, partially because of those marketing remarks properties priced under assessed value have been deemed good deals. This is very misleading . The Vancouver real estate market is a perfect example of this.

ASSESSED VALUE is the value that a public tax entity puts on a given property (in BC it’s a provincial crown corporation called Vancouver BC real estate Assessment) for purposes of taxation. Tax authorities, for example the City of Vancouver, then applies their own tax rates to the assessments provided.

According to remax Vancouver, such is differing from the FAIR MARKET PRICE. Fair market value proves to be the price that a home can bring on the open market. This is the cost that educated, motivated, and willing buyers will pay to procure the property from a seller who is selling of their own free will. Fair Market Value is created by comparison to comparable properties which have sold in the previous three to six months. (If no comparable houses are available, the time-frame may have to be boosted.) Based on these homes’ selling prices–these are called “comps”–the Realtors direct the seller on a fair asking price. Once a price is agreed upon between a buyer and seller, this becomes the fair market value of a exact property. Thus, it stands to reason that preceding making an offer, a buyer must examine comps themselves to come to an understanding of what is reasonable and fair.

Tweet This Post