Market Value vs Assessment Amount

We all remember a few years ago when Ontario switched to "market value" assessment.  When it happened they sent university students around after a brief instructional meeting to place market value on Peterborough homes.  They didn't do a very good job.

Many people's properties were valued too high and some too low.  The lows did nothing, (few complain that their taxes are too low) but the folks with the higher values filed for a re-assessment.  Flash forward a few years and look at assessment values today.

MPAC has updated their files with actual sale prices on a specific date, usually at least a year ago, so the amount is getting closer to actual market value but there are still many houses that are very under assessed.  These are the ones that buyers question when they view homes and think that the house is over priced becasue of the low assessment value. 

.MPAC looks at some key features:

• Age of House
• Building Square footage. (doesn't include basements, garages, decks, or porches)
• Location: ie urban, rural, waterfront, condo
• Lot dimensions: frontage, depth and total area
• Quality of Construction - This is broken down into 10 classes with 1 being very low and 10 being very high.  Class 6 represents the common standard of construction for the time it was built.  It is considered the benchmark class.

In addition MPAC not only values your property but it classifies it as well.  There are seven major property classes:

•  Residential
• Multi-residential
• Commercial
• Industrial
• Pipeline
• Farm
• Managed Forest

There are several sub classes for properties with specific and unique characteristics.

The assessment office only gets info on improvements that need a building permit.  If you have replaced you furnace, your roof and all your windows, they don't know about it but your market value would be much greater than a house that did not have those improvements.

The estimated value of a house is a certified appraiser’s opinion of the worth of a home at a given point in time. Lenders require appraisals as part of the loan application process; charges may vastly as per the location, area, and vicinity of the property. Market value is what price the house will bring at a given point in time. A comparative market analysis (CMA) is an informal estimate of market value, based on sales of comparable properties, performed by a real estate agent or broker. Either an appraisal or a comparative market analysis is the most accurate way to determine what your home is worth.

For more information check out  http://www.mpac.ca/pages_english/property_owners/assessment_guide.asp

Dominion Lending Centres Rates as of 9 February 2012

Terms	Bank Rates	Our Rates
6 Month	4.45%	4.45%
1 YEAR	3.50%	2.74%
2 YEARS	3.55%	2.74%
3 YEARS	4.05%	2.89%
4 YEARS	4.79%	2.99%
5 YEARS	5.29%	3.19%
7 YEARS	6.35%	3.99%
10 YEARS	6.75%	3.99%
Rates are subject to change without notice. *OAC E&OE

Prime Rate is 3.00%

Variable rate mortgages from as low as Prime - .10%   Please note that rates shown above are subject to change without notice. The rates shown are  posted rates and the actual rate you receive may be different, depending upon your personal financial situation. “Some conditions may apply. Rates may vary from Province to Province. Rates subject to change without notice. *O.A.C. E.& O.E.” Check with your Dominion Lending Centres Mortgage Professional for full details and to determine what rate will be available for you. *O.A.C., E.& O.E.

To Smoke or Not to Smoke?

This is a bit of a dilemma for the folks that are still smokers.  It is your house and there are so many places where you are no longer allowed to smoke that your own house seems OK, but is it?
 

In the last few years as the number of smokers has declined I have found that when prospective buyers look at homes where they can smell  smoke in the front hall they just walk back out again, especially if they have children.  If they do stay and look at the house and decide to put in an offer they will offer much less than asking price because they factor in the cost of repainting and re-carpeting.  

Smoking is bad for your health but it can also be bad for your wallet!