Okay, so the Ottawa housing market is not known for being very transparent. In my mind, the first step in buying a home is finding out its assessed value. The assessed value is used to identify the annual rate of taxes and according to the
City of Ottawa:
Q: What is a Property Assessment?
A: A property assessment is an estimate of the
market value of your property on a specific valuation date (January 1, 2008 for the new Property Assessment Notice).
Note: The market value is determined by taking into account what other houses in the area are selling for as well as the overall value of the home. There is owner work that may have been done that wasn't taken into account in the assessment. Be sure to ask why a home is priced for more then its assessed value!
Q: What is it used for?
A: The value of properties determines how the tax burden is shared between property owners. The City of Ottawa will use your property assessment value to help calculate your property taxes. The education tax rates, as set by the Province, will also be applied to the assessment value to establish the education portion of your property tax bill.
Notice the
MARKET VALUE. Yes! An indicator of what a house should be worth on the housing market! Oddly enough, this information is not freely offered when you search
MLS,
Grapevine, OR the
Ottawa Real Estate Board. Apparently the assessed value is not as important as the living room measurements. You are probably sitting here thinking - but Ginger! Those services don't do that for anyone! Oh no? I guess that means you've never looked at property in Gatineau.
Anyway. Back to the market value question - so how does one find out this information? I thought this was definately something a real estate agent would know so I called one up and asked about a house. She ignored the question and told me what they paid last year in taxes.
Now, being the geek that I am, I thought to myself - well, if I know what the rate is then I should be able to figure out the current assessed value.
And so I search the City of Ottawa website and found this
handy form as well as
other information that enabled me to make an educated guess (though still a guess, unfortunately).
My formula:
Take the annual taxes for 2008 and minus out $82 (or $84 depending on the information) and divide the remaining number by 0.01245831.
For example:
2008 Taxes: $2,300
(2300-82)/0.01245831=
$178,033.78If you lack the 08 number, use the 07 with this formula. Take the annual tax rate and minus out $32.50 and divide the remaining number by 0.01194727.