lipards

I'm checking some house price in Calgary. The list price on mls is way inflated over the assessment value by government. For example one I've found, assessment is 209,000, on mls, it's 284,500...that's 40% more!
So, which will be the one that closer to actaul value?

Steve_P

This particular case may be over inflated but as a rule I would go with the MLS price. Keeping in mind that this is the asking price and not necessarily the selling price. It could be that the owner insisted on listing it much higher than the agent recomended.

Also keep in mind that the assesment value is 1.5 years old.

Quote:

Originally Posted by City of Calgary

Your property assessment is based on The City of Calgary's estimate of the market value for your property on July 1, 2004 and characteristics and physical condition on December 31, 2004."

Cheers
Steve

philcUK

The assessment value by goverment is used for purposes other than market value i.e. taxes. The mls property value is likely to be closer to current market value. Even then it is only a guide. If someone wants more taxes, you will find these goverment assessment amazingly increases

Did you know Calagry is more than 30 miles from downtown Vancouver? You'll have abit of a commute from there

CalgaryBlade

The assessment was probably fixed last time it was sold or a house sold nearby. If that was more than 18 months ago (as Steve pointed out) then it would explain the 40% difference.

There is a property shortage in Calgary at present, in the area where I live there are 4 properties for sale (2 of which aren't built yet), so prices are increasing rapidly.

Cowtown

Thats not too bad actually. In our area the assessments are in the mid 200s but the sale prices are much much higher. I'd say roughly 70% higher.

Purley

Yes, I would say, don't take any notice of the assessed value. I don't think they can have any relationship to the actual market value of a house. I think its just for tax assessment purposes. I guess they mean something to the City! Its the same in Regina. My assessed value is way below what the market value would be. You cannot buy a house for the assessed value so just ignore it.