architectes hypothécaires

Municipal Assessment vs Market Value: The Differences

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How much is your house worth? If you thought you’d find the answer on your tax bill, think twice because you’re wrong! 

In fact, by looking at this bill, you’ll find the municipal assessment value of your property, but when you sell your house or refinance it, you need to know the market value.

“It’s not the same thing?”

The simple answer is: Not at all! 

Municipal assessment vs market value… what are the differences?

What is municipal value?

The municipal value, as its name clearly indicates, is the value determined by the assessment of the city, also called property assessment, for the sole purpose of calculating property taxes (the famous tax account mentioned above that we love receiving so much at the beginning of the year… NOT).

This municipal value is fixed over a period of three years and is calculated according to the real estate and properties nearby.

What is market value?

The market value has absolutely nothing to do with the latter. It is assigned only to your home, and will be used to determine a sale price. It is calculated according to certain factors – renovations, surface area, geographical location, features, etc. – and nearby comparables.

Unlike municipal value, market value is not fixed and varies considerably depending on supply and demand in the real estate market.

But then, how do I calculate the market value of my property?

Quite simply by doing business with an expert, such as a real estate broker. These professionals use the technique of comparables to determine a fair price based on current market supply and demand. If you want an even fairer price, you can go see a chartered appraiser… that’s their job! As for mortgage lenders, these professionals have their own appraiser in order to grant the right amount of financing and offer customers the best service and the best offer possible.

Need to finance or refinance your property?

The mystery is solved! You are now ready to face the market and impress many people at parties by sharing your new knowledge. And now that you’re aware of the differences between municipal value and market value, you’re ready to sell your home. But did you know that you can also refinance, for example to invest or carry out renovations?

When the time comes to finance or refinance your property, contact Expert du Prêt to get the mortgage loan you really deserve!


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