Today we’re going to talk about the 2023 tax assessments that were just released in Vernon and we’re starting now!

As we get into the new year, I'm sure every homeowner has one extra thing on their mind. Tax assessment time! Many homeowners in Greater Vernon have just received their tax assessments for 2023 and They are HIGH! There are outliers, of course, however many owners are seeing assessment values that are MUCH much higher than last year.

Now why is that?

First let’s look at how and these assessments are done - then when is critical. The provincial assessors do their evaluating each year in July so our 2023 assessments were based on last July’s evaluation, not what that number would be today. As most people are aware, the high real estate prices from the Covid effect were only just starting to slow down by July, and since assessments are looking at history, not predicting the future, many assessments still reflect the value of homes in that hot market. In the months since July, many, most, if not all, homes have decreased in value and if you were to try and get an appraisal or a Realtor evaluation on those same properties, they would be assessed for less today.

Now this is not certain for every property. Some properties can still be accurate or even on the low side, however that’s more out of luck than skill I’m afraid.

Just because your tax assessment goes up, it doesn’t necessarily equate to higher property taxes, because your taxes are actually based but they’re also based on the mill rate, which hasn’t been released yet.  Depends on what the calculations works out to, at end of the day.  Chances are it’s going to equate to higher taxes, however there’s not 100% certainty on that, so just something to be aware of.

What you need to know as a homeowner is that even if your assessment is one of the ones that is high if not extremely high, that does not mean your home is worth that amount.  Tax assessments bear little relation to the market value in any current market, and the reason is because of what we just talked about - they are late.  They are based on ancient history, not current market conditions.  The other reason assessments aren’t often accurate is because, if you think about it, when was the last time an assessor came inside your house?  Houses are like people - it’s what’s inside that counts.  An assessor can’t tell by a drive by or more likely google street view what your house is like on the inside.  Many homes have renovations taht have been done that didn’t require a permit, so how would anyone know anything has changed?  They base their analysis on a cookie cutter house about your age of about your size in your location. Chances are the numbers are off.  Raw land is usually fairly accurate, however once a building is on that raw land, all bets are off.  

Now if the assessment is way off the charts for your home and you know there isn’t a snowball’s chance in hell of it selling for that, you could challenge the assessment. You only have until the end of January though, so if you want to appeal, you can follow the process of doing so, just know you will need to prove your case with recent sales that justify your argument.  Otherwise they will just throw it out and it was a waste of your time.  The other thing to remember that if you’re selling your home, a high assessment isn’t a bad thing, as some buyers out there think that the assessment does actually reflect market value and trust the assessor’s opinion.  So make sure to weigh that out - if you aren’t selling, by all means, appeal.  If you are, think about it first, you may be doing yourself a disservice once the for sale sign goes up. 

One thing to consider by the way - If you feel like your valuation is low, and you’re not selling - keep it!  Celebrate!  If you fight it and win, the only thing you win is higher taxes. In reality changing the number on your tax assessed value does not change the market value of your house, only the market can determine the value of your home.

Either way, if you feel like your assessment is not reflective of the value of your home, call Salt Fowler and we will supply you with a complimentary accurate home evaluation and then you can decide whether it’s worth it for you to fight or not.  Click below to contact us to take advantage of this free offer.  Cheers and Happy Home Assessment!

If you want to talk to us about  Vernon real estate feel free to call us at 250-549-SALT (7258), text us at 250-309-9586 or email us at webinfo@saltfowler.com.