Thursday, May 19, 2016

How Are Land Values Established In Nanaimo?

Is the method consistent? Reliable?
You be the judge!
$99,000.00 Difference 
in value of City land for sale


2103 Bowen Road - City says appraised for $350,000.00


2103 Bowen Road - BC Assessment says 
$449,000.00

The city of Nanaimo has recently offered a half acre 'Mixed Use Development Site' for sale at 2103 Bowen Road Nanaimo. At the end of March an appraisal secured by the city put the land's value at $350,000.00.

The same parcel of land is valued by BC Assessment at $449,000.00 (based on July 1/15 value) which is a remarkable difference of just less than $100,000.00.

While putting a value on land is far from an exact science, especially in a volatile market we seem to be experiencing this is quite a spread from two authorities in the field. This is a variance of 28% between what BC Assessment says the land is worth and what a qualified appraiser claims it is worth.

This begs the question; if the city is happy with an offer in the $350,000.00 range are Nanaimo taxpayers being sold short? Would it be more prudent to not publish the appraised value and leave the market to decide the real price with the assessed value being considered the floor?

Another example of BC Assessment's valuation

The old city hall annex is still only being valued for $2 in spite of adjacent land values of over $500,000.00. 



allvoices

4 comments:

  1. ... And we still have Council keeping the vote on that deal secret from th public. So much for " openness and transparency" promises.

    ReplyDelete
  2. So, how does this buy happen. Will the city just take the first offer at $350,000 or can people keep bidding and up the cost out-of-sight, like we've seen in some home sales?

    ReplyDelete
  3. The council should instruct staff to list the property for the higher value.

    ReplyDelete
  4. Is it possible that whoever looked on line for the info took last year's appraised value? It was $351,000. Perhaps a large error was made without intention.

    ReplyDelete

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