Overview
A reconsideration of value is a formal request to review an appraisal when you believe the value conclusion may not reflect the property accurately.
This process exists to correct genuine errors, provide new evidence or clarify information that may have influenced the original report.
Lenders, not appraisers, control the reconsideration process, and each request must follow strict guidelines.
This guide explains how reconsiderations work, when they are valid, what evidence lenders will accept and what results you can expect across the GTA and surrounding areas.
An appraisal value can affect:
• Mortgage approvals
• Refinancing outcomes
• Equity take outs
• Legal settlements
• Estate distributions
If something important was missed, the reconsideration process ensures it can be reviewed properly.
Understanding the rules helps avoid rejected requests and unnecessary delays.
A reconsideration is not a complaint and not a request for the appraiser to “hit a number.”
It is a structured review focused on factual or analytical concerns.
Valid reconsiderations focus on:
• Missing comparables
• Incorrect property details
• Market evidence the appraiser did not have
• Errors in measurement, room count or condition description
• Incorrect sales data
• Misinterpretation of upgrades or features
Lenders will not accept emotional arguments, opinions or value desires.
When a Reconsideration Request Is Appropriate
Reconsiderations are not approved for:
• Asking the appraiser to increase value without evidence
• Custom or emotional arguments
• Statements like “my neighbour says it’s worth more”
• Outdated or irrelevant comparables
• High expectation based on renovation cost
• Sales from different neighbourhoods
• Sales from different market conditions
Lenders will reject these instantly.
A cap rate expresses the relationship between a property’s net operating income and its market value.
Formula:
Cap Rate = Net Operating Income / Market Value
Cap rates show the return an investor would receive if they purchased the property in cash.
Higher cap rates typically signal higher risk and higher potential return.
Lower cap rates signal lower risk and lower return.
How To Submit a Reconsideration Properly
- Gather Strong, Relevant Evidence
Provide:
• Address
• Sale date
• Sale price
• Distance from subject
• Property details
• Why it is more comparable than what was used
The evidence must match the subject’s type, size, condition and location.
- Write a Clear Summary of the Concern
Keep it factual, not emotional.
Examples:
• “Comparable at 12 Woodpine was not included. It is 200 meters away, similar size and closed last month.”
• “Square footage appears incorrect based on builder plan attached.”
- Submit the Request to the Lender
Clients cannot contact the appraiser directly.
All communication goes through the lender or AMC.
- Allow Time for Review
The lender sends the request to the appraisal firm.
The appraiser reviews the evidence and responds with:
• Accepted revisions
• Clarification
• Additional commentary
• No change to value
Appraisers check whether:
• The comparable is superior, inferior or similar
• The sale fits the same market conditions
• The distance is reasonable
• The property type matches
• The evidence was available at the time of inspection
• The detail in question is material to value
Appraisers cannot alter value without defensible market evidence.
- Value Increase
Possible only when strong new evidence supports it.
- Value Unchanged
Most common outcome.
Reconsiderations often reveal that the original comparables were stronger.
- Value Decrease
Rare but possible if new evidence shows the original value was too high.
- Additional Commentary Only
The appraiser may clarify methodology without changing value.
“Reconsiderations are appeals.”
They are not. They are factual reviews.
“The lender decides the value.”
Only the appraiser can change value.
“All comparables provided must be used.”
Appraisers choose only the most relevant ones.
“Renovation cost equals value.”
Value is based on market reaction, not cost.
How long does a reconsideration take?
Usually 24 to 72 hours depending on lender workflow.
Can I submit as many comparables as I want?
Yes, but only strong evidence matters.
Will the appraiser call me?
No. All communication goes through the lender.
Can a reconsideration hurt my value?
It is possible but uncommon.
If you believe your appraisal requires review, our team can help you evaluate whether a reconsideration is appropriate and identify evidence that lenders will accept.
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