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How to Read and Interpret Your Property Appraisal Report

Confused by your property appraisal report? Learn how to read and interpret key sections, understand market value, and avoid common misinterpretations.

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How to Read and Interpret Your Property Appraisal Report

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  1. HOW TO READ AND INTERPRET YOUR PROPERTY APPRAISAL REPORT A PRACTICAL GUIDE FOR BUYERS, SELLERS, AND HOMEOWNERS IN TORONTO PRESENTATION

  2. Why Understanding Your Appraisal Report Is Critical • Impacts loan approvals, pricing, and negotiations • Toronto market shifts fast—numbers must reflect reality • Don’t just receive the report—learn how to read it

  3. What Is a Property Appraisal Report? • Unbiased estimate of a home’s fair market value • Prepared by certified appraisers under AIC standards • Used in sales, refinancing, divorce, estates, and investments

  4. When Do You Get One? When Appraisals Are Issued • Before purchase or mortgage approval • During refinancing or legal settlements • When using property as loan collateral • Often required by banks in Toronto’s high-value areas

  5. What Does an Appraisal Report Include? Summary: Property address + appraised value Property + Neighborhood details Comparable Sales (Comps) Valuation Methods Photos, maps, and appraiser’s conclusion

  6. What Each Section Tells You Breaking Down the Report • Subject Property: Basic data + zoning • Neighborhood: Market trends + fit • Comps: Similar homes with price adjustments • Valuation Approaches: Sales, Cost, Income • Final Opinion: The appraiser’s value call

  7. What Impacts Your Final Value • Appraised Value: The key number • Condition (C1–C6) + Quality (Q1–Q6) ratings • Adjustments: Upgrades, location, condition • Effective Age vs Actual Age

  8. Appraisal Terms—Simplified • GLA: Above-ground finished area • Functional Obsolescence: Outdated features • External Depreciation: Nearby negative factors • Highest & Best Use: Most valuable legal use

  9. Red Flags in Toronto Appraisals • Using outdated or mismatched comps • Ignoring key renovations or additions • Comparing wrong neighborhoods • Misstating square footage (GLA)

  10. Challenging a Low Appraisal • Review with your agent • Highlight missed upgrades • Submit better comps • Get a second opinion if needed

  11. Why Everyone Reads the Appraisal • Lenders: Approve loan amount • Buyers: Negotiate pricing • Sellers: Set list price or respond to offers • Crucial in Toronto where appraisals often trail offer prices

  12. Final Thoughts • Your appraisal = a roadmap, not just a number • Understand how value was calculated • ` • Spot risks, opportunities, and negotiation angles

  13. Contact Us Phone Number Office Hours 647-812-7010 Monday-Friday 09.00-18.00 More Information Location admin@pvrealtyadvisors.com https://pvrealtyadvisors.com/ 2155 Dunwin Dr Unit 5, Mississauga, Ontario, L5L 4M1

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