Domus Realty

Real Estate in Halifax / Dartmouth and Surrounding Areas! MLS®

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How Assessments and Appraisals Differ

Sometimes homeowners are genuinely surprised by the
variation in the values attributed to their house or condo. Part
of the reason for this confusion is the source and type of the
value report. A property assessment by your municipality is
likely undertaken to determine rates for taxation, or to identify
areas requiring infrastructure or services. In such cases,
where properties are primarily identified in general terms,
such as by neighbourhood or by building type, it is unlikely
the assessment would be an accurate representation of the
current market value of your property. Alternatively, a bank’s
property appraisal tends to be closer to a home’s market
value, because a money lender needs reassurance that losses
could be recovered in the event of a mortgage default. Still,
such appraisals tend to be conservative, as mortgage holders
are not in the business of speculation. By contrast, a market
value assessment by a competent real estate professional is
much more likely to identify a home’s true value, as it will take
into account the property’s attributes, previous market activity

and current market demand.

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