Why Two Appraisals on the Same Estate Property Can Lead to Completely Different Conclusions

In many estate files, the expectation is straightforward:

A qualified appraiser is retained.

A value is determined.

The number is relied upon.

But occasionally, a second appraisal is obtained — and the result is not just slightly different, but materially so.

For lawyers and executors, this raises an uncomfortable question:

How can two professional appraisals of the same property arrive at different conclusions?

The answer lies not in error, but in judgment, methodology, and context.

Valuation Is Not a Fixed Number — It Is a Supported Opinion

Unlike a sale price, which reflects a single transaction, an appraisal represents an opinion of market value based on available evidence at a specific point in time.

Even when two appraisers are competent and acting in good faith, differences can arise due to:

• Interpretation of market conditions

• Selection of comparable sales

• Adjustments applied to those comparables

• Weight given to certain property features

The result is not randomness — but variation within a supported range.

1. Differences in Comparable Sale Selection

At the core of most residential appraisals is the direct comparison approach.

However, there is rarely a single set of “correct” comparables.

One appraiser may prioritize:

• Proximity to the subject property

• Recent sales within a tight timeframe

Another may expand the search to:

• Competitive neighbourhoods

• Slightly older sales adjusted for market movement

Both approaches can be valid — but they may produce different value indicators.

2. Variations in Adjustments and Weighting

Even when the same comparables are used, differences can still emerge.

Adjustments for factors such as:

• Lot size

• Gross living area

• Condition and level of finish

• Basement development

• Parking

…are not mechanical.

They involve professional judgment.

More importantly, the reconciliation process — how much weight is given to each comparable — can significantly influence the final value conclusion.

3. Interpretation of the Valuation Date

In estate matters, the valuation is often tied to a specific retrospective date, such as the date of death.

This introduces additional complexity.

Two appraisers may differ in how they interpret:

• Market conditions at that exact date

• The relevance of sales before vs. after the valuation date

• The extent of time adjustments applied

Even small differences in interpretation can lead to meaningful changes in value.

4. Scope of Work and Intended Use

Not all appraisals are prepared for the same purpose.

An appraisal prepared for:

• Informal guidance

• Real estate listing support

…may differ significantly from one prepared for:

• Estate settlement

• Potential beneficiary dispute

• Review by the Canada Revenue Agency

The level of analysis, documentation, and support can vary — and so can the resulting value.

5. Market Conditions and Data Availability

In some neighbourhoods or property types, limited comparable sales can make valuation more challenging.

When data is scarce, appraisers may:

• Broaden geographic search parameters

• Rely more heavily on adjustments

• Interpret market trends differently

This naturally increases the potential for variation.

What This Means for Estate Lawyers and Executors

A difference in appraised values does not automatically indicate that one is “wrong.”

However, it does raise an important issue:

Which appraisal is more defensible?

In estate contexts — particularly where:

• beneficiaries may disagree

• tax reporting is involved

• decisions may later be reviewed

…the focus should not be solely on the number.

It should be on:

• the strength of the supporting analysis

• the transparency of methodology

• the appropriateness of the comparables

• the consistency of reasoning

Why Early, Well-Supported Appraisals Matter

In many cases, conflicting appraisals arise after concerns have already surfaced.

At that stage, the valuation becomes reactive rather than proactive.

Obtaining a well-supported appraisal at the outset can:

• reduce the likelihood of disputes

• provide a clear reference point for all parties

• strengthen the position of the executor

• support reporting positions if reviewed

Final Thought

Two appraisals can differ — even when both are professionally prepared.

The key question is not:

“Why are the numbers different?”

But rather:

“Which appraisal is best supported, most transparent, and most defensible given the intended use?”