Written by Gurjit Ghai, REALTOR®
Rexara Realty Inc.·Published: September 5, 2026·Buying Farmland
Assessed value is the figure BC Assessment places on a property for tax purposes, while market value is what a willing buyer and willing seller would agree on in an open sale, and on farmland the two can be very different. Farm-classified land is often assessed on its agricultural use, which can be well below its market value as development or lifestyle land.
This is why I tell clients never to use the BC Assessment value as an offer price, because it reflects a tax classification, not the price the land would sell for. A parcel with Class 9 farm classification can have a low assessed value driven by farm-use rules, while its market value reflects soil, water, location, and what buyers are actually paying for comparable farms.
Treat the assessment as a data point and the market value as the real number, supported by comparable agricultural sales and the parcel's productive capacity. Read our Farm Valuation guide for how I build a market value, and do not anchor your offer to the assessed value.
Important: This answer is general professional guidance for educational purposes and is not legal, tax, financial or regulatory advice. ALR rules, water licensing, zoning and farm-classification requirements can change and depend on your specific property. Always verify with the relevant BC authorities and qualified professionals before making decisions.
Gurjit Ghai, REALTOR®
Personal Real Estate Corporation
Brokerage: Rexara Realty Inc.
Gurjit Ghai is a BC real estate professional specializing in agricultural land, ALR properties, and farm operations across British Columbia. He helps buyers and sellers navigate water rights, soil capability, farm classification, and the unique due diligence that farmland transactions require.