All residential properties are Provincially legislated to be assessed on the basis of market value. Market value is defined by the International Association of Assessing Officers as:
"The most probable price (in terms of money) which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
- The buyer and seller are typically motivated.
- Both parties are well informed or well advised, and acting in what they consider their best interests.
- A reasonable time is allowed for exposure in the open market.
- The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale".
Each year the Assessment Department examines recent sales of properties within the County. Before a sale is used in the assessment analysis, it is carefully researched to ensure that it is an accurate market value transaction. These sales are then used as indicators for the formation of market value assessments for all properties.
The valuation date for all residential properties is July 1st of the previous year. This means that the assessed value of residential property represents the most probable selling price of the property as of July 1st, of the previous year.