January 3, 2024

The Truth About Calgary’s City Assessment Value

Realtor® with 2% Realty

The assessed value, as determined by the City of Calgary, is often different from the market value of a property. Assessed value is primarily used for taxation purposes while market value is used for resale purposes.

In Calgary, the distinctions between City Assessment Value and Market Value are often misunderstood. It is believed by many that the “Assessed value” of a property is a straightforward indicator of its worth. However, this is a misconception that can lead to unexpected outcomes for property owners and potential buyers.

In Calgary’s real estate market, the City Assessment Value is derived through a mass appraisal method, focusing on neighborhood sales comparisons. This value, used primarily for taxation purposes, often differs from the market value, which is influenced by current market trends and unique property attributes. Crucially, homeowners and potential buyers need to understand these differences to make informed decisions. This article aims to clarify these points, explaining their purposes and how they diverge in the Calgary real estate context.

We’ll reveal how Calgary’s City Assessment Value is calculated and its distinct purpose. Key differences between this value and market value will be explained, essential for those interested in selling or buying in Calgary. Read on for insights that demystify this often misunderstood topic.

Decoding Calgary's City Assessment Value

How City Assessment Value is Calculated

In Calgary, the City Assessment Value is calculated using a mass appraisal method. This approach evaluates properties in bulk as of a specific date, which is July 1st of the previous year. The process relies heavily on neighbourhood sales comparisons, taking into account the selling prices of similar properties. However, it often overlooks the unique characteristics of individual properties, such as specific renovations or unique architectural features. This method ensures a standardized approach for property tax calculations across the city.

By the time you receive your notice in January the value will almost be 12 months outdated.

Assessed Value Versus Market Value

Calgary’s assessed values are based on historical market data, typically reflecting the property’s value as of the previous year. This approach will result in discrepancies from the current market value. For instance, if the market experiences a downturn after data collection, the assessed value may be higher than the current market value. Conversely, in a rising market, assessed values might lag behind, appearing lower than the market value. Additionally, assessed values don’t account for aspects like interior condition, curb appeal, or proximity to busy roads – factors that significantly influence market value. Therefore, while assessed value offers a standardized measure, market value provides a real-time pricing snapshot.

We can provide you with a FREE Online Market Assessment!

Factors Influencing City Assessment Value

Property assessment value is influenced by several key factors. Property inspections play a crucial role, where assessors may physically inspect properties or use software tools for evaluation. Another significant factor is the consideration of any rental income the property generates. Home improvements and upgrades can also sway the assessed value, reflecting changes in the property’s worth. Furthermore, the process involves market comparisons, looking at the sale prices of similar properties in the area. Finally, the replacement cost, or the expense to rebuild the property if destroyed, is factored into the assessment.

Practical Implications for Homeowners: Selling and Buying Perspectives

For home sellers in Calgary, relying on the assessed value for financial decisions can be misleading. It’s often preferable for the assessed value to be lower than the market value, as it results in lower property taxes. If a homeowner suspects their property’s assessed value is excessively high, they can seek a market evaluation from a Realtor® or appraiser for a more accurate figure. On the other hand, home buyers should not base their offers solely on the assessed value. They should consider the historical and current market values, as these reflect real-time market conditions more accurately. Seasonality can also affect property value, learn more about the best and worst months to sell.

While the assessed value might be relevant for understanding future tax obligations, it should not be the sole factor in determining the offer price. Buyers should be aware that if the assessed value seems too high, they might need to communicate with the city post-purchase.

Expert Insights: Realtor® vs. City Assessments

Professional Realtors® and city assessors approach property valuation in Calgary differently. Realtors® focus on current market trends and individual property features, providing a market value that reflects what buyers are willing to pay. This approach contrasts with the city’s mass appraisal method, which may not capture unique property aspects like interior upgrades or aesthetic appeal. These divergent methods highlight the importance of consulting a Realtor® for a comprehensive market analysis, especially when considering selling or purchasing property. Understanding these differing perspectives can guide homeowners in making informed decisions in the real estate market.

Navigating an Inaccurate Property Assessment

When homeowners in Calgary encounter discrepancies between the assessed value and what they perceive as the market value of their property, they have a recourse to address these issues. The City of Calgary provides a 60-day Customer Review Period following the mailing of annual assessment notices, during which property owners can discuss their assessments with a City assessor. If unresolved, a formal complaint can be filed with the Calgary Assessment Review Board (ARB) before the final complaint date shown on the Assessment Notice. The complaint process requires detailed reasoning, supported by evidence such as comparable property information.

It’s important to note that tax payments must still be made by the due date, even when a complaint is filed. Successful complaints can lead to adjustments in assessed value, with potential tax refunds for the property owner.

Calgary's Property Assessment: Essential Links

Resource	Link
City of Calgary Assessment Review Board - File a Complaint	Calgary Assessment Review Board - File a Complaint
City of Calgary Property Assessment	City of Calgary Property Assessment
City of Calgary - Assessment Search	Assessment Search
Calgary Assessment Review Board - ePortal	ePortal by Calgary ARB

Lower Fees Plus Exceptional Service

FREE Online Market Assessment

Erick Dillmann

2% Realty Associate | Realtor® | BA Economics

With more than 17 years in the Calgary real estate sector, Erick offers an extensive knowledge base and expertise to each client he assists. He blends his marketing expertise with a sincere passion for exceeding client expectations. Erick’s remarkable success is demonstrated by his achievement of the Top Platinum Producer award for eight consecutive years, plus saving his clients over 1.2 million in commission fees.