Market Perspective

BC Assessment: Stop Calling It “Market Value”

By Catherine Worthy, REALTOR® · The Worthy Group, Oakwyn Realty Ltd.

I think the BC Government needs to change two words in our property assessment system.

“Market value.”

Every January, homeowners across British Columbia receive an assessment that BC Assessment describes as an estimate of their property's market value.

Legally, they're entitled to call it that. The Assessment Act defines “actual value” as the market value of the land and improvements.

But I think the terminology is misleading.

After more than 30 years working in mortgages and real estate, I have watched buyers and sellers put far too much weight on one number:

The BC Assessment.

Buyers use it as a ceiling.

Sellers use it as a floor.

And neither is necessarily right.

“But It's Only Assessed at $725,000”

If I show a buyer a home listed for $799,000 and the BC Assessment is $725,000, I can almost predict the question.

“Why are they asking $799,000 when BC Assessment says it's only worth $725,000?”

I don't blame the buyer.

If a provincial Crown corporation tells you the market value is $725,000, why wouldn't you assume that is what the house is worth?

That's what those words mean to most people.

Except that's not necessarily what the number means at all.

BC Assessment's 2026 assessments, for example, estimate market value as of July 1, 2025, with physical condition considered as of October 31, 2025.

A buyer purchasing a house in September 2026 isn't buying it in the July 2025 market.

They're buying it today.

That distinction matters.

Sellers Do the Exact Opposite

Then I sit down with sellers.

Their home is assessed at $800,000.

I show them comparable sales suggesting the current market value may be closer to $775,000.

The response?

“But BC Assessment says it's worth $800,000.”

And frequently:

“And ours is nicer than the neighbour's, so it must be worth more than that.”

Again, I don't entirely blame the seller.

The government has given them a document containing a number and called that number market value.

Why wouldn't they anchor to it?

So we have created this strange situation where buyers believe the assessment proves a house is overpriced while sellers believe the same assessment establishes the minimum their property should be worth.

One government number. Two completely opposite conclusions.

Maybe the problem isn't the public.

Maybe the problem is what we're calling the number.

BC Assessment Is Doing a Different Job

This isn't an attack on BC Assessment.

BC Assessment has an enormous job. It is responsible for assessing more than 2.2 million properties across British Columbia.

Its assessments provide the foundation that allows provincial and local taxing authorities to distribute billions of dollars in property taxes.

That's important work.

But let's be realistic about what that system can and cannot do.

BC Assessment collects information from sources including building permits, land titles, real estate transactions, homeowners, property visits and aerial and street imagery.

It considers characteristics such as size, age, quality, condition, layout, views and location. Renovations and deterioration can affect an assessment when that information is known and incorporated into the property's record.

But that does not mean the database perfectly reflects every individual house.

Anyone who works in real estate has seen assessment records where the information doesn't completely match what is actually there.

Bedrooms and bathrooms can be wrong.

Renovations may not be adequately reflected.

Deferred maintenance can be difficult to capture.

And two houses that look remarkably similar on paper can feel completely different when you walk through the front door.

One has been meticulously maintained for 25 years.

The other needs a roof, windows, flooring, bathrooms and $100,000 worth of work.

A buyer knows the difference within ten minutes.

Here's the Part I Find Particularly Strange

BC Assessment itself essentially acknowledges the distinction I'm talking about.

Its information for home buyers says assessments represent market value as of July 1. But when buyers want to determine a home's current market value, BC Assessment says it is best to consult a Realtor or private appraiser.

Read that again.

The government calls the assessment market value, but then tells consumers that if they want to know the current market value, they should get another opinion.

That should tell us something.

I'm not suggesting BC Assessment stop estimating values based on market evidence.

I'm suggesting we stop using terminology that encourages consumers to mistake an assessment created for one purpose and one valuation date for the answer to a completely different question:

What would this house sell for today?

Call It What It Is

I think the province should change the terminology.

Instead of prominently calling it Market Value, call it:

Then explain underneath:

An estimate of property value established under the Assessment Act for property assessment and taxation purposes, based on a legislated valuation date.

That's accurate.

That's understandable.

And it doesn't encourage a buyer standing in a kitchen 14 months later to believe that a government database has already determined what they should pay for the house.

This Isn't About Making Realtors More Important

Some people will undoubtedly read this and say:

“Of course a Realtor doesn't want people relying on BC Assessment.”

Fair criticism.

So don't take my word for it.

Look at actual sales.

There are properties that sell above assessment.

There are properties that sell below assessment.

There are properties that sell remarkably close to assessment.

Because the market determines the selling price, not the assessment.

If BC Assessment were a definitive statement of current market value, we wouldn't need appraisals. We wouldn't need comparable sales analysis. Buyers wouldn't negotiate. Sellers wouldn't test prices.

We could simply look up the assessment and write the contract.

Obviously, real estate doesn't work that way.

Words Matter

Government terminology should help consumers understand information, not require an explanation from a professional about why the words don't mean quite what they appear to mean.

And this particular terminology creates confusion every single day in real estate transactions across British Columbia.

Buyers think:

“I shouldn't pay more than assessment.”

Sellers think:

“I shouldn't sell for less than assessment.”

Both can make poor decisions because they're anchoring themselves to a number that was never designed to answer the question they're asking.

So BC Assessment can keep the methodology.

Keep the valuation date.

Keep the assessment system.

But I think it's time for the BC Government to reconsider the label.

Call it the Property Taxation Value.

Because if BC Assessment itself distinguishes between its assessment and what a property is worth in the current market, perhaps the terminology should make that distinction clear too.

Sometimes two words really do matter.

Catherine Worthy, REALTOR® · Worthy Group | Oakwyn Realty Ltd. | BC Owned & Operated