A. Additions and Renovations
The Assessment Act requires that your assessment notice provides separated values for land and buildings. In reality, separating land and building value in the real estate market is usually not needed.
Sometimes, building values increase. This usually happens when there is an addition or renovation to an existing older building. BC Assessment constantly updates our property database from sources such as building plans, city permits, questionnaires and air photos. Our staff also visit some properties to collect information.
There can be a delay between when a change on a property actually happens and when it is added to the Assessment Roll because not all information is received immediately. Your building value may have increased due to an addition or renovation that was done recently. You can check your building details on BC Assessment’s website, bcassessment.ca, or by contacting BC Assessment.
B. Changing Construction Costs or Depreciation
Has your house increased in value when you haven’t made any changes? Buildings can increase in value if construction costs rise rapidly or if there is greater demand for a popular property type. For example, in some markets, heritage houses are highly sought after for their unique features. This type of house is relatively rare and there can be many buyers who want them, so prices get bid up.
Generally, over time, buildings depreciate in value. The value of a somewhat dated single family home, for example, reflects the cost to build new, less the amount of wear and tear over the years. If construction costs rise faster than the decrease due to normal wear and tear, your building value can increase.
The most important figure is the total market value for your property. This is the amount that your property would have sold for as of July 1st of last year. If you believe the total value is correct, the split between land and buildings is not really a concern as the split does not generally impact property taxes.
call BC Assessment
to discuss any specific questions about your property assessment.