# Gta Tax assessment value vs. Market value?



## commie (Nov 20, 2011)

For the folks in Toronto,on how accurate are the tax assessment value of a house to that of the real market value?

Let's say a property has been 2008 assessed at $650,000 , is that a good indication of it's market value.


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## Spudd (Oct 11, 2011)

I don't find it's accurate. The tax assessment on my house is a lot less than the market value in my opinion. I base my market value estimate on looking at listings of similar houses in my neighbourhood.


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## kcowan (Jul 1, 2010)

They always over assessed my brother's property. He fought them every year and got an adjustment. When I sold it after he died, it turns out they were right. It sold for $30k over list price and was torn down.


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## GeniusBoy27 (Jun 11, 2010)

The coolest thing I've seen in a while is Zoocasa appraisal

http://www.zoocasa.com/en/zoopraisal

Zoocasa is not that far off the real market value. 

My tax appraisal is way off my retail value.


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## MoneyGal (Apr 24, 2009)

Cool! 

My property tax value is less than what the hoarder's house up the street went for last year after a fire which partially destroyed it. (It was completely rebuilt over the last few months and is up for sale now.) 

(Link is to Toronto Fire Services' page of info and photos on the fire.)


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## jamesbe (May 8, 2010)

Well I just moved.

Old out assessed at $360 I sold it for $430

New house assessed at $420, paid $500

At least they are consistent...

EDIT: wow that zoopraisal is pretty much dead on, said $510,000


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## andrewf (Mar 1, 2010)

So, the deal with assessments is that the absolute level of assessment is irrelevant, what matters is your assessed value relative to the rest of the tax base. So, rather than honestly appraise properties at their market value and have hordes of angry taxpayers disputing their assessments, MPAC consistently undervalues each property. Homeowners who don't think too hard about it think they are getting a great deal on their taxes and they don't pester MPAC. In reality, no one is saving any taxes because the property tax rate is set to raise a given level of revenue from the tax base. If the tax base is under-appraised by 20%, the rate is just set 25% higher.

So there you are, I let you in on MPAC's little secret.


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## kcowan (Jul 1, 2010)

andrewf said:


> So there you are, I let you in on MPAC's little secret.


And still a lot fairer than many jurisdictions (like Florida).


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## marina628 (Dec 14, 2010)

We had our home built for us and it was occupied april 2010.Our first year we paid only on the land value while house was being built and this year we got a tax bill but it said the building was 700 sq ft smaller than it is.Many of my family said leave it and just pay my $3890.00 tax bill but I did not want to leave it and in 5 years get some crazy tax bill.So we had to get them out to look at the house and get things sorted.They sent another bill with correct size and $28,000 adjustment in the price.My value is about $50,000 less than we think it will sell for but they told us to be prepared the first two -three years will be low then we will get an adjusted bill.I think MPAC has no idea to tell about the upgrades in a house so they base it in a simple format :Granite , expensive floors etc factor in in the sell price not the appraisal.


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## kcowan (Jul 1, 2010)

We enclosed our jacuzzi off the master on the flat 3-car garage roof. Our friend who worked at the Markham tax assessment office said to call it a closed in porch rather than an extra room. That saved us years of extra taxes (1987-1997).

I admire your honesty, Marina. My Dad used to say that it was a privilege to pay taxes.


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## marina628 (Dec 14, 2010)

I would feel too guilty not to let them know the mistake ,we originally had two plans and we went for the larger floor plan .I am not sure where communication broke down but as soon as I seen it i knew there was a mistake.Now maybe they will like me enough to put an extra street light up ,We have a light on the front of property but neither on the side and that road is dark at night.
Have to do my homework on how to do that , we are willing to pay for it but hydro said the municipality decides where they go.There are only two other homes on this road ,we have the corner lot and pitch black at night on the one side of the property.


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