If you own a home in West Kelowna, you've probably seen at least two different numbers for what it's worth: the BC Assessment notice that arrives every January, and an online estimate. If you've refinanced, you may have a bank appraisal too. When you ask a REALTOR, you'll get a fourth number, a market evaluation. They rarely match, and that's normal. Each one answers a different question.
The short answer
A market evaluation is a REALTOR's professional opinion of likely market value, based on comparable sales, current market data and the home itself. It's the number built to answer one question: what would a buyer likely pay for this home, in this market, right now?
Market evaluation
When I prepare an evaluation, I start with homes that have recently sold nearby that are as close as possible to yours in type, size, age, lot and view. Then I look at the market data around those sales: what's for sale now and at what prices, what's been taken off the market without selling, how quickly homes are selling and whether there are more buyers or more sellers. Finally, I walk through your home, because no data set can see a new kitchen, a tired roof or the view from your deck.
- Who prepares it: a licensed REALTOR
- What it's for: deciding whether to sell, and setting a list price
- Cost: usually free, with no obligation
Appraisal
An appraisal is a formal valuation by a qualified appraiser. Lenders usually order one when you buy with a mortgage or refinance, to confirm the home supports the loan. Appraisers also rely on comparable sales, and a good appraisal and a good market evaluation are often close. The difference is the purpose: an appraisal protects the lender, and it's usually more conservative about what the market might pay.
- Who prepares it: a qualified appraiser
- What it's for: mortgages, refinancing, estates and legal matters
- Cost: a fee, often paid by the borrower
BC Assessment
Your BC Assessment is used to calculate property taxes. It reflects an estimate of market value as of July 1 of the year before your notice arrives, using mass appraisal across every property in the area. In a market that moves quickly, it can be out of date the day you receive it, and it can't account for what's changed inside your home.
Online estimates
Online estimates come from automated models that use public records and recent sales. They're a reasonable starting point for curiosity, but they can't see your renovations, condition, view or the specific street, and in neighbourhoods with mixed housing types they can miss by a wide margin.
Which number should you use?
If you're thinking about selling, or deciding whether to move up or downsize, use a market evaluation. It's the only one of the four built to reflect what a buyer would likely pay today, and it comes with a person who can explain it and answer your questions.
If you'd like one for your home, request a free home evaluation. I prepare every one personally, not with an algorithm, and there's no obligation to list.
General information only, not legal, tax or appraisal advice.