Category Archives for "St. John’s Real Estate"
We frequently are asked from home owners (as well as some buyers) what is the difference between an appraisal and the assessment value of a property?
The two are completely different and are used for different reasons. They have no correlation to each other at the current time.
St. John’s Property Assessment Value
The municipality you live in will have an assessed value on your home. This value is how they calculate your annual property tax. Assessment figures however, are nothing more than a gauge or price line guide for a city or town to collect an appropriate amount of taxes from those that reside in the community. The official nature of this may encourage you to rely on the assessed value of your home for pricing purposes, which could be a big mistake. Real Estate assessed value almost always has no correlation to current market value. One of the biggest problems with the assessed value is that it is often not current. Municipalities will usually assess value once every 1-3 years. The market can change substantially during this time frame. VERY rarely is your property assessment value over the appraisal or market value. If it is, there are measures you can take for a re-assessment of your home. In St. John’s The ‘Assessment Act 2006’ is the legislative authority governing assessment and taxation in the City.
How are the property taxes calculated in St. John’s?
For the taxation year 2015, residential property tax is calculated at the rate of 8.1 mils, or 0.81 per cent of a property’s total assessment. A property with a total assessed value of $100,000 would be charged an annual property tax of $810, calculated as follows:
Assessed Value = $100,000
X Mil Rate = .0081 (8.1 Mils)
Annual Tax = $810
The water tax portion is a separate flat rate of $615 / yr
To search for your property assessment value for St. John’s click here.
To search for all other municipalities outside St. John’s visit the Municipal Assessment Agency
An appraisal is a method of valuation that compares similar properties in a similar area usually within a shortened time frame. This is similar to a REALTORS® Comparative Market Evaluation (CMA) but not as in-depth. While both are using essentially the same information, they can vary depending on the property, location and appraiser/REALTOR®. Sellers can be very fixed on this figure, especially when it benefits them. (think refinancing) The problem with a high appraisal value is that it can be an unreliable means of what the value really is today’s market. Nothing worse then over pricing your home to list. Just because you have listed your home with the an appraisal in place or not, true market value is what a buyer is willing to give and a seller is willing to accept.
Contact me if you have any questions
Stephen Winters is a second generation Realtor® and has been with RE/MAX since 2003. Growing up and being active in St. John's he knows the area.
You will find his approach down to earth and realistic using the latest technology as well as old fashion service.
Stephen Winters prides himself in providing a wealth of real estate information and market statistics to help his clients learn more about buying and selling real estate in St. John's, Newfoundland.
You turn on the television and watch a news story about real estate house prices going down in St. John’s. Then you receive a flyer in the mail about a property around the corner that sold for a decent price. Next you read a newspaper article about the St. John’s real estate market on the upswing again.
It’s a little like being on a roller-coaster ride!
Unfortunately the ride isn’t much fun if you’re thinking of buying or selling a home. In fact, it can be very confusing and frustrating. You just don’t know if “now” is the right time to make a move.
In reality, the housing market has been fluctuating for decades. Yet, people sell their homes every day throughout the St. John’s Metro Area for good prices. As well, just as many people get into their next dream homes affordably.
When you hear news of market fluctuations, there are two important things to consider.
First of all, a lot of media information about the housing market is national, or at least regionally for bigger cities. If the housing market is trending up or down nationally, remember that it doesn’t necessarily mean that the St. John’s real estate market is doing the same. This can even be relative to some subdivisions. (ie Southlands or Clovelly etc)
In fact, it’s entirely possible for housing prices to be rising in your neighbourhood while they are falling nationally, and vice versa.
Secondly, if you’re selling a current property while buying another home, then the net effect of market fluctuations may cancel out.
Say, for example, that the St. John’s market is on the upswing. You’ll probably be able to sell your current home for a good price. However, the home you purchase will likely also be priced to reflect the upswing.
The same holds true when the market is down.
All that being said, there are some circumstances in which you need to consider market fluctuations when deciding whether or not to make a move. A good REALTOR® will help.
Looking for a good REALTOR®? You have three to choose from. Give us a call and we’ll be happy to answer all your questions.