Why Appraisers Reject
Client-Provided Sales
Understanding the strict criteria appraisers use to evaluate comparables ensures the final report is objective, defensible, and aligned with lender guidelines.
Why This Matters
The appraisal process must remain independent and unbiased. Understanding why certain sales are excluded helps clarify how an accurate market value is derived.
The Foundation of Selection
To select only the most relevant "paired sales" that a typical buyer would consider a direct substitute for the subject property.
Selection Barriers
Top Reasons Sales Are Rejected
Appraisers verify all details through MLS and municipal records. If a renovation or basement finish cannot be confirmed through public data, the sale is often rejected.
How to Provide Useful Sales
To increase the chance your suggestions are used, follow these professional standards.
1. Stick to the 90-180 Day Window
Only provide sales that closed within the last 3 to 6 months to ensure they reflect current GTA pricing trends.
2. Stay Within the Micro-Market
Focus on homes within the same immediate subdivision. Crossing major arterial roads often changes the valuation logic.
3. Match the "Utility"
If your home is a 3-bedroom bungalow, only provide other bungalows. Do not include 5-bedroom two-storey homes.
4. Identify Verified MLS Sales
Provide MLS numbers. Appraisers cannot use "handshake" deals or private sales that lack verifiable public records.
5. Avoid "Distress" Transactions
Skip sales marked as Power of Sale or Estate Sale, as lenders usually require appraisers to ignore these "forced" transactions.
The Appraiser's Ideal Comparable
📍 Proximity
The closer the better. Ideally within 1km in urban areas, reflecting the same local demand and school catchments.
📅 Recency
Reflects the most current "meeting of the minds" between buyers and sellers in the current interest rate environment.
🏗️ Similarity
Matches structure type, age, and square footage within a +/- 15% range to minimize the need for subjective adjustments.
⚖️ Arm's Length
A typical market transaction where neither party is under undue pressure and the property had full market exposure.
🔍 Verifiable Data
Every feature—from basement finish to lot size—must be confirmable through third-party sources like Geowarehouse or MLS.
Common Misunderstandings
“Every sale in my neighborhood is a comparable.”
Neighborhoods contain micro-markets. A house on a quiet cul-de-sac is not comparable to one on a busy main road.
“My comparable sold for more, so it proves my value.”
Only if it matches all criteria. A high sale might be an "outlier" due to a specific buyer need or unique feature you don't have.
“Appraisers ignore client input on sales.”
Appraisers review all provided evidence, but are ethically bound to only use sales that meet professional (CUSPAP) standards.
“This house looks exactly like mine.”
Aesthetics are secondary to "bricks and mortar" facts like year built, effective age, and structural configuration.
FAQ
Common questions regarding comparable selection and rejection.
No. To maintain appraisal independence, the appraiser must have the final say on which sales are the most representative of the market.
Yes. In a formal Reconsideration of Value, the appraiser will provide commentary explaining why a specific sale was not deemed comparable.
Lenders allow them to be reviewed, but they will only accept them if the appraiser can justify their inclusion according to industry guidelines.
The appraiser will expand the search to competing neighborhoods with similar demographics and price points, making adjustments for the location change.
Build a Stronger Reconsideration
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 evidence.
