Sunday, 30 June 2019

What's the Difference between a Property Assessment and an Appraisal?


When our appraisers are inspecting a property, we often get questions about tax assessment.  We want to try to clarify some of these commonly asked questions.  GVS is one of the industry leaders in appraisals for tax assessment purposes.  In fact, last year we worked on a pilot program with the University of Manitoba Statistics Department where we explored the statistical relevance of a property assessment in relation to the selling value of a home.  마카오 호텔 Before we get into the results, I think we should explain what is the difference between a home appraisal and a tax assessment.

A Tax Assessment is a value used by the City or Municipality to value a building for tax purposes.  마카오 환전 The government typically uses in-house valuation personnel to calculate this value and this is done typically once every two years.  The data is collected from assessors and inspectors who will do site visits to residential properties when a permit is pulled or sometimes via random inspections.  This information is public knowledge and can be accessed through the City website or the Government of Manitoba website.  The websites links are provided at the bottom of this blog.  The website will also highlight some important aspects about the home including the site size, 마카오 환전상 building descriptions and location on a map.  The tax assessed value is calculated through a statistical software program that isolates variables such as location, size, year built and number of bedrooms and bathrooms.  Tax Assessments use sales data provided by MLS and Land Titles.

A Residential Appraisal Report is a value reconciled by a Certified Residential Appraiser (CRA).  The most prestigious certification comes from the Appraisal Institute of Canada (www.aicanada.ca).  An appraisal report is a much more in-depth look at the specific property.  마카오 환치기 Appraisers use at least two to three different approaches to reconciliation of value for a property including a comparable approach, a cost approach, and an income approach.  GVS takes this one step forward and also provides a statistical analysis report which includes the median sales range of similar properties in the area over the previous 5 years as well as the accuracy of the assessed value to the sales value of similar homes in the area.