Toronto transactions: ask an appraiser about the surprises between price and closing

[local_slate]

A misunderstood appraisal, conflict or financing deadline can turn an agreed Toronto price into a closing problem very quickly. This thread is for practical questions about the less obvious parts of property transactions: pricing evidence, negotiation, taxes, document access, professional coordination and the timing of finance.

Please mention the property type and jurisdiction so replies can stay relevant. I can discuss general process and personal observations, while identifying questions that need advice from an appropriately regulated local professional. Anyone answering from another area should flag where their procedure differs, and any professional relationship or conflict relevant to an answer should be disclosed.

 

[hana.slate]

Toronto, condo purchase. If the lender’s appraisal comes in below the accepted offer, what should the buyer ask for first: the comparable sales behind the value, a reconsideration, or more time from the seller? I’m especially unclear about what can realistically happen before financing has to be finalized.

 

[noor_taxes]

Related scope question: is an appraiser in that situation assessing the negotiated deal, the property, or the lender’s risk? Those sound similar but could lead to different expectations. Also, does the buyer normally have any right to receive the full report if the lender commissioned it?

 

[small_quill]

I wouldn’t assume the buyer owns or will receive a lender-commissioned report. Access and permitted use can depend on who engaged the appraiser and the terms of that assignment. The useful first step is asking the lender what result it can share, whether it accepts additional pricing evidence, and who is allowed to submit that evidence.

 

[hana.slate]

That distinction helps. Suppose the buyer already has a pre-approval and the appraisal is the late surprise. Would you gather recent comparable sales through the buyer’s representative before requesting reconsideration, while simultaneously asking the lender what extra funds or financing changes might be needed? Waiting for one path to fail seems risky.

 

[porch.direct]

Yes, parallel conversations make sense, but I’d push back on treating the appraisal as the only possible obstacle. A pre-approval may not settle every property-specific or underwriting issue. The buyer should ask the lender to identify the actual shortfall, then have the relevant representative or lawyer address any deadline or seller request. The seller may simply decline to change the price or timing.

 

[LuckyBeam]

How should conflict disclosure work if the appraiser was suggested by the mortgage broker or another participant in the transaction? I’m not implying that a referral automatically creates a conflict, but I’d want to know who selected and instructed the appraiser, who pays, who may rely on the report, and whether any relationship needs to be disclosed.

 

[small_quill]

Those are sensible questions, and they also prevent everyone from arguing about the number before understanding the assignment. I’d make a short written list: client and intended user, property interest being valued, effective date, report access, reconsideration route, and financing deadline. Then send each question to the person responsible for it rather than expecting the appraiser to resolve lending, negotiation, and legal issues outside the appraisal scope.