Real Estate Investing Facts

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

To combat this, many Realtors have begun including phrasing like “priced under assessed value” in their marketing materials for the home’s sale. It has not mattered. Instead, what’s happening is that buyers’ misconceptions are seemingly validated and, thus, continued. Shoppers see these houses as “good deals,” but in truth they are not. The Vancouver real estate market is a perfect example of this.

The ASSESSED VALUE turns out to be figured by the public tax assessor. (For BC this is a provincial crown corporation termed as Vancouver BC real estate Assessment.) The entire purpose for the assessed price is to determine taxes; that is all. This value is recorded and combined with the tax levels of the area.

According to REMAX Vancouver FAIR MARKET VALUE is the price that  an unbiased buyer is willing to pay to an seller who is willing and is under no obligation to let go of their property. Prior to pputting the home for sale , the listing agent usually will pull up comparable properties that sold in the last few months , depending on what they find . They then guide the seller as to how to price their home . The agreed upon price between a buyer and seller effectively becomes the fair market value of that property. This is also it is important to bring a few similar sold listings prior to making an offer; it’s a great way to determine whether the subject property is priced accurately.

Foreclosure Investing

Rein Canada

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Tags: REMAX Vancouver, Vancouver BC real estate, Vancouver real estate