You're considering selling your Calgary home, and after speaking with your neighbours you decide to check the city of Calgary's Property Assessement webpage. You're pleased by the results - they confirm what you thought your property is worth.
What if I told you that more often than not, the assessed value that the City of Calgary has you paying taxes on is higher, occasionally by as much as 20% or more than the current market value of your Calgary home?
I randomly chose 15 Calgary properties that have sold this month (October 2011) in all price ranges and compared their sale prices to the posted assessed values on the city's website. The results are shown in the table below. Due to privacy laws I'm not allowed to display house number - instead I've indicated the block and Calgary community the properties are in. I've also shown how much each property sold for on a $ per square foot basis.
Calgary Real Estate Sale Price vs City of Calgary Assessed Value
How Assessed Value Compares to Actual Sale Price
- Difference between Sale Price (SP) vs Assessed Value (AV) averaged 14% for the 15 properties
- 67% (10 of 15) of these properties sold for LESS than what the City of Calgary had the property assessed at
- 33% (5 of 15) of these properties sold for MORE than what the city had property assessed for
- 27% (4 of 15) of these properties had a sale price that was under Assessed Value value by a margin of > 20%
- Just over 1/4 (4 of 15) homes sold for within +/-5% of city Assessed Value
- The property with the greatest difference between Assessed Value and Sale Price was the least expensive sale (sold for $105,000, 41% less than Assessed Value)
What this means to you as a Calgary taxpayer
The City of Calgary assessed property value is meaningless in determining the current market value of your Calgary home / condo
Simply put, the City of Calgary has a lot of work to do on their property assessment process. 2 times out of 3 they over-assessed properties, including Calgary homes, condos, and vacant land. More than a quarter of the time Calgary properties are over-assessed by a margin of greater than 20%. Only 27% (4 of 15) of these Calgary properties sold for +/- 5% of the city assessed value.
If you're planning on selling your Calgary home or condo call a Professional. Our team of Calgary REALTORs would be pleased to provide you with current and relative sales comparables for your specific community, along with advice on recent market trends. There is never a good time to over-price your Calgary home, this is doubly so during the colder winter months.
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