APPRAISAL FUNDAMENTALS
Clear, practical explanations of how appraisers determine value, select comparables, make adjustments and interpret market behaviour.
This category provides the foundation every homeowner, lender, investor or legal professional needs to understand the appraisal process in the GTA and surrounding areas.
Real estate valuation is built on a set of core principles that guide every appraisal report.
This category breaks down those fundamentals so clients can understand exactly how market value is determined and why lenders rely on appraisals for major financial decisions.
These guides explain:
• How comparables are selected and evaluated
• What influences market value
• Why adjustments are made
• How lenders interpret appraisal reports
• What “effective date” and “as is value” really mean
• How appraisers handle differences between properties
The goal is to provide clarity, reduce assumptions and give you a grounded understanding of how value is built.
Understanding the fundamentals helps you:
• Read an appraisal report with confidence
• Understand why certain homes are used for comparison
• Recognize why value is never determined by cost
• Avoid common misconceptions about upgrades
• Anticipate lender review and potential questions
• Interpret the value conclusion more accurately
• Make better decisions before refinancing or listing
These are the core building blocks of every valuation assignment.
WHO BENEFITS FROM THIS CATEGORY
This category is especially useful for:
• Homeowners preparing for a refinance
• Buyers wanting to understand market value
• Sellers comparing their home to others
• Lenders reviewing appraisal reports
• Lawyers handling valuation based matters
• Investors reviewing property potential
• Anyone wanting a clearer understanding of how value is determined
ARTICLES IN THIS CATEGORY
How Appraisers Select Comparables
Learn how appraisers choose the most relevant comparable sales and why certain homes qualify while others do not. Understand distance, time, similarity and market behaviour.
What Lenders Look For In An Appraisal Report
A clear look at what lenders review inside an appraisal report, including risk factors, comparables, adjustments and value support.
What Really Influences Market Value
Breaks down the true drivers of value, including location, condition, size, quality, market trends and buyer behaviour.
How Appraisers Adjust For Differences Between Properties
Explains how adjustments are made when comparable homes differ in size, features, finishes or overall condition.
Understanding Effective Date And As Is Value
Understand why the effective date is critical in valuation and how “as is value” affects refinancing, legal matters and market interpretation.
Why can’t appraisers use any sale as a comparable?
Only homes that are similar in location, age, size, condition and market reaction qualify as true comparables.
Why do appraisers make adjustments?
Adjustments reflect differences in features, size or condition. They help align comparables to the subject property.
Does renovation cost equal value increase?
No. Market value is determined by buyer reaction, not by project cost.
Why do lenders question certain values?
Lenders focus on risk and supportability. They require clear evidence behind every value conclusion.
What is the effective date?
It is the date the opinion of value applies. Market conditions can change rapidly, so this date is essential.
Ready to speak with a valuation expert?
If you want clarity on how appraisers determine value and how fundamentals apply to your property, our team can help.
We provide accurate, lender ready valuations used for refinancing, legal matters, investments and major financial decisions.
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