Should I Get an Appraisal Before Buying a Home in Ontario?

Short answer: you don't always need one, but an independent appraisal before buying is worth it when the price is hard to judge, the deal is unusual or the stakes are high. In Toronto, Hamilton and across Ontario, buyers most often order one for private sales, family purchases, unique homes and small multi-unit buildings.

Isn't the Lender's Appraisal Enough?

If you are getting a mortgage, your lender may order its own appraisal. That report exists to protect the lender, confirming the home is good security for the loan. It usually happens after your offer is accepted, and you may not even see it.

A pre-purchase appraisal you order yourself answers a different question: is this a fair price for me to pay, before I commit?

The lender's appraisal can also come in below your purchase price. If that happens, the lender may lend less, and you would need to make up the difference. Knowing the value early reduces that surprise.

When Is an Appraisal Before Buying Worth It?

• Private sales. With no listing agent setting a price, an independent value protects both buyer and seller.
• Buying from family. A documented fair market value can matter for taxes and family harmony (see selling a home to a family member).
• Unusual homes. Custom builds, homes on odd lots or properties with few true comparables are hard to price by eye.
• 2-4 unit properties. Rental buildings involve extra factors, and a careful analysis is worth having.
• Quiet markets. When few similar homes have sold recently, an appraiser can dig deeper into the data.

When You Might Not Need One

For a typical condo or house in a busy neighbourhood with plenty of recent sales, your agent's comparable sales analysis may give you enough confidence. In fast, competitive markets, offers often go in with few or no conditions, and there may not be time to order an appraisal first. Talk to your agent and lawyer about what conditions make sense for your purchase.

How Does a Pre-Purchase Appraisal Fit Around an Offer?

The easiest timing is before you make an offer, so you know your number going in. If your offer includes a financing or other condition, an appraisal can sometimes be done within that period, but it needs to be booked quickly. The appraiser will need access to the home, which usually means arranging it through the seller or listing agent.

One important point: many lenders only accept appraisals ordered through them or from appraisers on their approved list, and some need the report addressed to them. Check with your lender or mortgage broker before you book, so you do not pay for a report they cannot use.

How Much Does an Appraisal Before Buying Cost?

At Best Home Value, appraisals start at $370 for a condo or townhouse, $475 for a detached or semi-detached house and $700 for a 2-4 unit property in the Greater Toronto and Hamilton Area. Your exact fee is confirmed in writing within one business day, before anything is booked. See our full fee table.

How long does it take?

The signed PDF report is typically delivered 2–3 business days after the inspection. Learn more about our purchase and refinance appraisal service.

How Is an Appraisal Different from an Agent's Opinion?

An agent's price opinion can be very useful, but an agent's pay is often tied to the deal closing. A certified appraisal is a signed, independent opinion prepared by a designated appraiser to the Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP), with the reasoning laid out. For more, see appraisal vs. an agent's price opinion.

What You'll Need to Get Started

• The property address and listing details, if any
• Your offer or condition deadlines
• Contact details for arranging access

Related Articles

• Refinancing in Ontario: how the appraisal affects your loan
• Appraisals for private mortgages
• Appraisal vs. an agent's price opinion: what's the difference?

This article is general information, not tax, legal or financial advice. Please speak with your accountant, lawyer or lender about your situation.