Assessment , Land value ?

[NinePack]

Hello , I received my assessment of the knew place we bought and wondering if anyone would know why the building value would go up even though we didnt do anything or why the land value would go down and we didnt do anything neither have the neighbours or the whole area.

thanks for any info!

[troutman]

http://www.calgary.ca/PDA/Assessment...ssessment.aspx

Your annual property assessment reflects the estimated market value (the amount it likely would have sold for on the open market) of your property based on the valuation date of July 1 of the previous year, as set by the Municipal Government Act. Real estate market conditions may change from the valuation date to when you receive your current assessment. Market changes that have occurred since July 1 of the previous year will be reflected on the following year’s assessment. Following the assessment notice mailing, there is a 60-day Customer Review Period in which you are able to contact us with any questions you have.

To determine market value, we use one of three approaches to value:

• Sales comparison: comparing to sales of similar properties
• Income: capitalize the income being generated by the property
• Cost: land value, plus the depreciated replacement cost of the improvement

Most residential properties in Calgary are assessed using the sales comparison approach. Multi-residential properties are assessed using the income approach and non-residential properties may use any one of the three approaches. Some property types, such as farm land, are subject to standards other than market value.

[squiggs96]

Basically, here's how it works. The city will pick a value for your property, let's assume it's $1,000,000. Everyone on your block that has the same size lot will have the same land value. In your case, let's assume everyone is assessed with an $825,000 land value. Since there is only one number left over, your house value is the plug of $175,000.