Unlocking Property Value: Expert Insights on Real Estate Appraisal

“The house has been empty for eight months. Does that mean it is worth less?” It is a question estate trustees may ask while preparing an inherited home for appraisal or sale. The furniture has been removed. Nobody is living there. The property may feel colder, quieter and less inviting than it once did. For beneficiaries, those changes can create concern. One may believe an empty home should be discounted. Another may argue that vacancy makes no difference because th

I recently joined family lawyers Steve Benmor and Leanne Townsend on Divorce Explained for a conversation about valuing a home during separation and divorce. We covered the appraisal process, reasons two opinions of value may differ, and the challenges that arise when one spouse is considering buying the other’s interest in the property. Watch the full conversation below. Walson Consulting Inc. provides independent residential property appraisals for separation and divorce th

“This house is almost identical to the matrimonial home. But it sold two months after my clients separated. Can the appraiser still use it?” For a family lawyer reviewing a retrospective appraisal, the concern is understandable. The property is on the same street. It has a similar layout, comparable living area and the same type of basement. Its condition is closer to the matrimonial home than any of the earlier sales. There is just one complication. The transaction o

“That value is too low. My brother is getting the house at a discount.” Her brother sees it differently. “It needs a new roof, the kitchen is dated, and I’m taking on all the repairs. That value is already too high.” Both beneficiaries are looking at the same appraisal. The property description is the same. The comparable sales are the same. The concluded value is the same. Yet each believes the figure favours the other. For estate lawyers and trustees, this can b

"A house on the same street just sold for $1.3 million. How could our home have been worth less when we separated?” For a homeowner, the comparison feels convincing. The neighbouring property has a similar layout. The lot is roughly the same size. It may even have been built by the same builder. But there is one important difference. It sold in a different market. When family lawyers request an appraisal as of a past separation date, recent neighbourhood sales can i

“The kitchen was renovated before our mother passed away. Why doesn’t the appraisal reflect that?” Another beneficiary remembers things differently. “The cabinets were installed, but the work wasn’t finished until months afterward.” The estate trustee has several invoices. Some relate to deposits, others to materials, and none clearly establishes when the kitchen became fully functional. What initially appeared to be a straightforward estate appraisal now involves a m

"The matrimonial home looks completely different today than it did when the parties separated. Which version of the house is the appraiser supposed to value?" It is an important question in retrospective matrimonial appraisal assignments. The parties may have separated several years ago. Since then, the kitchen may have been renovated. The basement may have been finished. An addition may have been constructed. Or the opposite may have occurred—the property may hav

"There haven't been any similar homes sold nearby. How can an appraiser determine the estate property's value without good comparable sales?" It is a concern that can arise in estate appraisal assignments, particularly when the property is unusual or the local real estate market has been quiet. Perhaps the home sits on an oversized lot. Perhaps it has been extensively renovated. Perhaps it is considerably larger than surrounding properties. Or perhaps very few prope

"The separation date was eight years ago. Can an appraiser really tell us what the matrimonial home was worth that far back?" It is a question that often arises in matrimonial matters when property issues remain unresolved years after separation. Sometimes the required valuation date is two or three years in the past. Sometimes it is five years. Occasionally, an appraiser may be asked to determine the value of a property as of a date ten or more years ago. This natura

"The beneficiaries are comfortable with the property's value today. Do we really need an independent appraisal?" It is a question that can arise early in an estate administration. At the time, everyone may agree. The executor believes the property is worth approximately $1.3 million. The beneficiaries think that sounds reasonable. A Realtor provides a similar estimate. There appears to be little reason for anyone to challenge the number. Then circumstances chang

"The parties separated several years ago, the house has since been renovated, and neither spouse can clearly remember what condition it was in at the time. How can an appraiser value it now?" It is a problem that can arise in retrospective matrimonial appraisal assignments. The required valuation date may be years in the past. The property the appraiser inspects today may look completely different. The kitchen may have been renovated. The basement may have been fini

"The property was worth around $1.4 million when the owner passed away. Six months later, similar homes are selling closer to $1.2 million. So what is the estate property actually worth?" It is a question that can create considerable confusion during estate administration. The Greater Toronto Area real estate market does not always move gradually. Interest rates change. Inventory rises and falls. Buyer confidence can shift. A neighbourhood experiencing multiple of

"My clients separated five years ago, but nobody obtained an appraisal at the time. Is it too late to determine what the matrimonial home was worth?" It is a question that frequently arises in matrimonial matters. The parties separated years ago. No appraisal was completed. The property may have been renovated since then. The real estate market may have gone through several significant changes. And now, during negotiations or litigation, counsel needs an opinion o

"The estate appraisal says the property was worth $1.25 million, but HouseSigma shows $1.4 million. Which one are we supposed to believe?" It is a question that can quickly create uncertainty in an estate administration. An executor obtains an independent appraisal. The report provides an opinion of market value supported by comparable sales and market analysis. Then a beneficiary searches the property online. Within minutes, they may find a different number on Hous

"We're almost ready to settle. We just need an appraisal of the matrimonial home." It sounds straightforward. The parties have spent months negotiating. Most financial issues have been narrowed. A mediation or settlement meeting may already be scheduled. There is just one remaining question: What is the matrimonial home worth? An appraisal is ordered with the expectation that it will simply provide the missing number. But sometimes the appraisal uncovers issue

"The estate property sold for significantly more than the appraised value. Doesn't that prove the appraisal was wrong?" It is one of the most common questions that arises after an estate property has been sold. For estate trustees and beneficiaries, the conclusion can seem obvious. If the house sold for substantially more than the appraisal, then surely the valuation must have been too low. In reality, the answer is often much more complicated. A higher—or lower—sal

"The kitchen was renovated years ago, but neither spouse remembers exactly when the work was completed. Does that really matter for the appraisal?" In a retrospective matrimonial appraisal, it can matter a great deal. When a property is being valued as of a past date—often the date of separation—the appraiser is not trying to determine what the home is worth today. The appraiser is trying to answer a much more specific question: "What was the property worth, in the co

"The beneficiaries just need a value as quickly as possible. Can't the appraisal simply be done as a 'quick' report?" It is a question that occasionally arises during the administration of Ontario estates, particularly when tensions between beneficiaries are already high. At first glance, requesting a faster appraisal may seem perfectly reasonable. Everyone wants to move the estate forward. The executor wants to reduce delays. The beneficiaries want answers. Howev

"We don't need to go inside the house. Can't the appraiser just look at it from the street and determine the value?" It is a question that occasionally arises in matrimonial appraisal matters, particularly when one spouse remains in the matrimonial home and the other party wants to avoid conflict over access. At first glance, a drive-by appraisal may seem like a practical solution. There is no need to coordinate an interior inspection. There is less interaction betwee

"The executor plans to renovate the property before selling it. Doesn't that mean the estate appraisal should reflect what the home will be worth after the renovations?" It is a question that estate trustees and lawyers occasionally face during the administration of Ontario estates, particularly when an inherited property has been vacant for years or requires significant repairs. At first glance, the answer may seem obvious. If renovations are expected to increase the s