Overview
Disputes about a property’s condition are one of the most common reasons clients question appraisal results.
Sellers, buyers, homeowners and lenders may all view condition differently, but appraisers must assess it based on objective, verifiable facts and market supported standards.
Condition directly influences comparable selection, adjustment decisions and value.
This guide explains how appraisers determine condition, how disputes are handled and what evidence matters across the GTA and surrounding areas.
Condition affects:
• Comparable selection
• Value adjustments
• Market appeal
• Lender confidence
• Risk assessment
• Repair requirements
A misunderstanding about condition can lead to frustration or incorrect expectations.
Understanding how condition is evaluated helps clarify the appraisal process.
They rely on:
• Physical inspection
• Photos
• Material quality
• Workmanship
• Age of updates
• Functional design
• Maintenance history
Condition is not about décor or personal taste.
It is about measurable quality and overall upkeep.
Common Condition Tiers Include:
• Original or outdated
• Dated but maintained
• Moderately updated
• Fully updated
• Renovated
• Newly built
• Superior or custom quality
Appraisers match the subject to the closest tier and select comparables with similar condition.
Disagreements arise when:
• Homeowners believe upgrades carry more weight than the market does
• The appraiser identifies deferred maintenance the owner does not notice
• Renovations are cosmetic rather than structural
• The comparable homes used had higher or lower quality
• The homeowner believes cost equals value
• Photos do not fully represent the property
• Market expectations are misunderstood
Condition disputes almost always come from differences in interpretation, not errors.
How Appraisers Handle Disputed Conditions
- “My home is fully renovated.”
If renovations were partial, dated or inconsistent, condition may be rated as moderately updated.
- “But we spent a lot on upgrades.”
Cost does not determine condition. Market reaction does.
- “The comparable homes are not as nice.”
Photos, MLS details and features determine comparability, not memory or opinion.
- “The appraiser missed upgrades.”
If upgrades are not visible, not structural or not market relevant, they may not influence condition.
- “This home needs nothing.”
The appraiser may identify:
• Aging mechanicals
• Dated bathrooms
• Worn flooring
• Maintenance items
• Exterior issues
These impact condition even if the home appears clean.
What Evidence Helps Resolve Condition Disputes
Useful evidence includes:
• Renovation receipts
• Permit records
• Before and after photos
• Contractor invoices
• Detailed upgrade lists
• Dates of improvements
Unhelpful evidence includes:
• Renovation cost alone
• Personal opinions
• Verbal statements
• Comparables from different condition tiers
Lenders rely on the appraiser’s professional judgment unless:
• A material error is found
• New evidence changes the condition assessment
• The comparables used were not appropriate
• The appraiser misinterpreted a feature
Lenders rarely overturn condition ratings without strong evidence.
“Condition is subjective.”
Appraisers follow objective standards.
“If the home looks modern, it must be fully updated.”
Appearance does not always reflect structural or mechanical condition.
“Upgrades equal higher value.”
Only if the market rewards those upgrades.
“New paint means improved condition.”
Cosmetic work rarely changes condition tier.
Can a condition dispute change the value?
Yes, but only if the original rating was incorrect or missing evidence.
Do appraisers adjust value for renovations?
Only if supported by comparable sales.
Can I provide photos for reconsideration?
Yes. Clear photos help support your case.
Is the appraiser required to revisit the home?
Only if the lender requests a new inspection.
If you believe the condition of your property was not reflected accurately in an appraisal, our team can help you evaluate the evidence and prepare a strong case for reconsideration.
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