What Should I Know About Property Assessments?
Do you have questions about the city assessment you may have recieved in the mail this week? Read our blog post to find out more about city assessments in Edmonton.
If you’re one of over 400,000 owners of Edmonton real estate that got a city assessment notice (also known as property tax assessment, or property assessment), and you’re not sure what it means, I'm here to help. In this blog post, I’ll be taking a look at some frequently asked questions about property assessments, such as what they are, how they’re compiled, and if there’s anything you can do if you think yours may have been subject to errors.
What Are City Assessments?
City assessments are evaluations of the value of real estate properties within a city or municipality. These assessments are used to determine the property taxes that homeowners are responsible for paying each year.
How Are City Assessments Done?
The process of conducting city assessments begins with a team of assessors visiting each property in the city to gather information about the property, such as its size, age, condition, and any improvements that have been made. This information is then used to calculate the property's market value, which is an estimate of what the property would sell for in the current market.
The market value of a property is then used to calculate the property's assessed value, which is the value that is used to determine property taxes. In most cases, the assessed value is a percentage of the market value, with the percentage varying depending on the city or municipality. For example, in some areas the assessed value may be 80% of the market value, while in others it may be 100%.
Pro Tip: It's important to note that the assessed value may not always be the same as the market value, as there are many factors that can affect the value of a property. Factors such as the overall condition of the property, any improvements that have been made, and the overall real estate market can all affect the assessed value.
What Should I Know About My City Assessment?
As a homeowner, it's important to understand how city assessments work as they can have a significant impact on your property taxes. For instance, this year residential property values increased by about 3.5% this year, while non-residential properties increased in value by about 6%. While that can be good if you’re thinking of selling, it will also explain the nearly 5% you’ll probably see in property taxes this year. This is where understanding your city assessment can be valuable in predicting future costs.
However, it's important to note that these figures are city-wide estimates, so your home may have risen more or less in value than the figures stated above. For instance, a home in Sherwood Park could have much different numbers on it's 2023 property assessment than a home in Westmount.
Is There Anything I Can Do If I Think My Assessment Is Unfair?
Absolutely! If you disagree with the assessed value of your property, you have the right to appeal the assessment, and provide evidence as to why you believe the assessed value is incorrect.
Overall, city assessments are an important tool for municipalities to determine the value of properties and set property tax rates. As a homeowner, it's important to be aware of how assessments work and how they may affect your property taxes.