Appraised Value

Appraised value is a formal, opinion-based estimate of a property's market value prepared by a designated appraiser using recognized methodology such as the direct comparison, cost, or income approaches. In British Columbia, appraisers who carry the AACI (Accredited Appraiser Canadian Institute) or CRA (Canadian Residential Appraiser) designation from the Appraisal Institute of Canada are widely recognized as qualified professionals for this purpose. Mortgage lenders typically require that an appraisal be completed by a qualified designated appraiser before advancing funds.

No — these are two distinct figures. BC Assessment produces an assessed value each year under the Assessment Act, reflecting an estimate of market value as of a specific valuation date (typically July 1 of the prior year), and it is used to calculate property taxes. An appraised value, by contrast, is prepared by a designated appraiser (such as an AACI or CRA member) for a specific client and purpose, such as mortgage underwriting, and reflects conditions at the date of the appraisal report. The two figures may differ significantly depending on market conditions and the appraisal date.

Property Transfer Tax (PTT) in BC is generally calculated on the greater of the purchase price or the fair market value of the property, under the Property Transfer Tax Act. If a lender's appraisal returns a value different from the contract price, the fair market value determination — not the appraised value itself — drives the PTT calculation, and the BC Ministry of Finance applies current PTT rates of 1% on the first $200,000, 2% on the portion from $200,001 to $2,000,000, 3% on the portion from $2,000,001 to $3,000,000, and an additional 2% on the residential portion exceeding $3,000,000. Consult the current BC Ministry of Finance guidance or a tax professional for how an appraised value may interact with any applicable exemptions.

The First-Time Home Buyers' Program exemption under the Property Transfer Tax Act is tied to the fair market value of the property, not solely the appraised value or purchase price in isolation. As of 2026, the full PTT exemption applies when the fair market value of the property does not exceed $835,000, with a partial exemption available on a sliding scale up to a threshold above that — consult current BC Ministry of Finance guidance for the precise upper limit. An appraisal may serve as evidence of fair market value, but the Ministry of Finance makes the final determination for exemption eligibility.

When purchasing a strata lot, a lender will typically order an appraisal of the specific strata lot to establish its appraised value for mortgage underwriting purposes, consistent with requirements under the Strata Property Act (SBC 1998, c. 43) framework governing strata ownership. The appraisal will generally consider factors specific to strata lots, such as the condition of the building, the strata corporation's financials, and any known deficiencies noted in a depreciation report, as these can affect market value. Buyers should also request a Form B Information Certificate from the strata corporation, as the financial and bylaw information it contains is material to a complete assessment of the strata lot's value.

BC real estate licensees regulated by the British Columbia Financial Services Authority (BCFSA) under the Real Estate Services Act (RESA) are authorized to provide comparative market analyses (CMAs) and opinions of value as part of their licensed services, but these are not appraisals and do not carry the same professional standing. Only designated appraisers holding credentials such as the AACI or CRA from the Appraisal Institute of Canada are qualified to produce a formal appraisal report used for mortgage underwriting or other purposes requiring a certified appraisal. Licensees should be careful not to misrepresent a CMA as a formal appraisal, as doing so could constitute professional misconduct under RESA and its Rules.

When an appraised value is lower than the contract purchase price, a lender will typically base the loan-to-value ratio on the appraised value rather than the purchase price, which can reduce the mortgage amount available to the buyer. This may require the buyer to increase their down payment to cover the gap between the appraised value and the purchase price, or to renegotiate the purchase price with the seller. The subject removal and financing conditions in the contract of purchase and sale — governed by BC contract law — are critical in determining what options the buyer has in this situation.

When property within the Agricultural Land Reserve (ALR) is sold in BC, the appraised value must reflect the restrictions on use imposed by the Agricultural Land Commission Act (SBC 2002, c. 36) and the regulations administered by the Agricultural Land Commission (ALC), including limitations on non-farm use, subdivision, and residential construction. Because ALR restrictions can significantly constrain what a buyer may do with the land, a qualified appraiser will account for those restrictions when estimating market value, which may result in a lower appraised value compared to similarly sized non-ALR land. Parties involved in ALR transactions are encouraged to consult the ALC directly for current rules applicable to the specific parcel.

Under the Wills, Estates and Succession Act (WESA) of BC, an executor or administrator has a fiduciary duty to properly value estate assets, and obtaining a formal appraisal from a designated appraiser is a common and prudent step in establishing the fair market value of real property as of the date of death. An accurate appraised value is important for determining the value of the estate for distribution purposes, calculating any applicable PTT on a subsequent transfer, and supporting the executor's accounting obligations to beneficiaries. Executors should seek independent legal advice regarding their specific duties under WESA.

Foreclosure in British Columbia is a judicial process governed by the BC Supreme Court Civil Rules and the Law and Equity Act, and the court may order an appraisal to establish the current market value of the property when determining an upset price or when considering whether to grant an order for sale. The appraised value helps the court and the parties assess whether a proposed sale price is reasonable and protects the interests of the mortgagor and any other creditors with registered interests on title. Because BC foreclosure is court-supervised rather than a power-of-sale process, appraisal evidence plays a particularly important role in judicial oversight of the sale.