Overview
Clients often share sales they believe should be used in an appraisal.
However, appraisers must evaluate comparables based on strict criteria that protect appraisal independence and ensure the final value reflects true market behaviour.
Not all sales, even strong ones, qualify as suitable comparables.
This guide explains why appraisers sometimes reject comparables provided by clients and how these decisions are made across the GTA and surrounding areas.
The appraisal process must remain:
• Independent
• Objective
• Defensible
• Aligned with lender guidelines
• Supported by market evidence
Understanding why certain comparables are excluded helps prevent frustration and clarifies how appraisers determine the most accurate market value.
When a Reconsideration Request Is Appropriate
The Sale Is Too Far From the Subject Property
Distance matters.
Neighbourhood boundaries, school zones and micro market dynamics can create major price differences.
Even if a sale looks similar, it may be:
- Outside the neighbourhood
- On the wrong side of a major street
- In a different school catchment
- In a superior or inferior pocket
The Sale Had Unusual Circumstances
Not all sales reflect true market value.
Appraisers cannot use comparables affected by:
- Power of sale
- Estate sale pressure
- Off market transactions
- Family transfers
- Distress or motivated seller situations
- Assignment sales with unique terms
The Comparable Has Incorrect or Unverified Data
Appraisers verify all details through MLS, municipal records and public sources.
A comparable may be rejected if:
- Square footage is unknown
- Renovation details are unclear
- Basement finish cannot be confirmed
- Legal status is uncertain
- Lot data is inaccurate
A strong comparable should be:
• Recent
• Close in proximity
• Similar in size and style
• Similar in condition and quality
• Reflective of true market behaviour
• Supported by full MLS data
• Free of unusual sale circumstances
If a client provided sale does not meet these criteria, it is excluded for accuracy and lender compliance.
To increase the chance your sales are usable:
• Provide sales within the last 90 to 180 days
• Use homes within the same micro market
• Match property style and lot characteristics
• Share MLS numbers for verification
• Avoid atypical sales
• Provide photos if available
The more aligned the comparable is, the more likely it will be considered.
Common Misunderstandings
“This house looks similar, so it should be used.”
Small differences can create major price changes.
“My comparable sold for more, so it proves the value.”
Only if it matches all key criteria and reflects typical market behaviour.
“Appraisers ignore client input.”
Not true. They review all evidence but must follow strict rules.
“Every sale in the neighbourhood is comparable.”
Neighbourhoods contain micro markets with different price levels.
Can I choose the comparables?
No, but you can provide suggestions for review.
Will the appraiser explain why a comparable was rejected?
Yes, through commentary in the report or during lender review.
Do lenders allow client provided sales?
Only if they meet standard criteria.
Is the reconsideration process the same as providing comparables?
No. Reconsideration is formal and requires specific evidence.
If you want help identifying strong comparables for your reconsideration request or appeal, our team can guide you through the process and ensure you present the strongest possible evidence.
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