The assessment to this property is $ 777,000 in the MPAC report. Why is it listed at $1.2 million?
The Municipal Property Assessment Corporation (MPAC) uses a series of algorithms to calculate a “value” that is multipled by the Mil rate (per thousand) to calculate the municipal taxes each yr
The assessed value is often (depending on when they last did the calculation) below the market value … a property that has not sold for a long time gets more or less “ignored” until it sells
This algorithm system was set up about 10-15 yrs ago, before that the local municipalities assessed their own way when a property was constructed/modified w building permits and over time there were great inaccuracies between never changed older homes and new construction.
There was a huge controversy over MPAC methodology a few yrs ago and MPAC re-jigged their algorithms – resulting in everyone’s assessed value going down (but caused the municipalities to simply raise their mil rates = taxes remain the same
Further in Leaside, Rosedale, Forest Hill etc (all independent towns within Metro Toronto til 1953, 1965 and then late 1990’s when amalgamation took place) were most out of whack with algorithm system when first implemented – they had political clout and influenced the MPAC to not increase their values — even though they had the grandest homes and richest people
Perhaps most importantly in this case, many yrs ago, this property was expanded from a 5room bungalow or 6 room 2 storey into a side-by-side duplex and the dble garage was added – very odd for neighbourhood and therefore difficult to “assess” for MPAC’s predecessor systems … this odd-ness is carried forward until this house sells again and it’s purchase price is added to the mix of sale prices used for that neighbourhoods algorithm
Combining the history, politics, lack of change, the algorithm system and steadily rising property prices for the last 17 yrs most assessments are low … but there should be a rough co-relation between the assessments on all the properties you’ve analysed and the prices the sold at.
But the rough relationship is not a guide to purchase price — supply and demand for that particular parcel & improvements is STILL the governing principle