What’s the #1 Thing That Lowers Appraisal Value?

Weak Comparable Sales = Lower Appraisal: What Ontario Homeowners Must Know

In Canada, the appraisal value plays a major role when selling your home. It provides you with the value of your home. However, what causes this number to decline? are the main factors that reduce a home's appraisal value.

 The Reason I Ask This Question

One issue keeps coming up when I assist homeowners in Ontario with the : "What really lowers down my home's value during appraisal?"

You may be surprised by the answer that continues coming to light after looking over dozens of reports and speaking with qualified appraisers.

The Answer is

If I had to choose only one factor that frequently reduces an appraisal value, it would be this: insufficient or out-of-date comparable sales (or "comps").

Appraisers lower the value of your house to reduce the risk to the lender when comparable properties in your neighborhood haven't sold well recently or when the unique features of your house don't match what purchasers are willing to pay.

Why does maintenance matter?

A home that needs major fixes will be worth less. The appraiser will closely examine the . 

• Cracked ceiling or walls
• Damaged floor
• Peeling paint 
• Roof issues

Additional Items That Lower Value

Although the #1 is poor maintenance, there are other factors that can lower the value of your house as well:

• Bathrooms and kitchens that are outdated
• Strange layouts that don't function well
• Dead plants and messy yards

How to Maintain Your High Value

• Even small adjustments can make a big difference!
• Make sure your home is clean and fix any broken items.

Why This Matters in Canada

Every dollar matters in the Canadian real estate market. You can sell for more money or take out a bigger loan for upgrades or modifications if your appraisal value is higher. 

Remember that maintenance not only makes your home a comfortable place to live, but it also protects your investment. Regular maintenance is the greatest way to keep your house valued at a high level when it's time for an appraisal. The other factor is comparable sales and sometimes homeowners miss this when they go for evaluation. 

1. What Are “Comps” and Why They Matter

"Comps" refers to comparable sales, or nearby homes that have recently sold. These are used by appraisers to compare values. The assessed value typically corresponds with the weaker data when these are weak. 

Your value is closer to the lower sale, for example, if three homes that are comparable to yours sold for $700,000 and one sold for $650,000 in the last three months.

Your appraisal can be lowered in neighborhoods with low sales or if the most recent sales were out of date. 

2. The Hidden Root Cause: Market & Data Gaps

Even a well-maintained house in a typical neighborhood may receive a lower appraisal if:

• The market has cooled (less demand).
• The lot size, style, and location of comparable homes varies too much
• Insufficient high-quality data is found by the appraiser to support a higher value.
• According to June 2025, for example, appraisals may yield low results only because "recent comparable sales within the last 90 days" were poor. 

3. Why It Means So Much for Homeowners

• Your loan amount or refinance terms may decrease if your assessment value is less than you anticipated.
• You might have to reduce your asking price if you're selling.
• You might have less equity than you initially believed.
• You can enhance your argument in advance by being aware of the weaknesses in comps.

4. What You Can Do to Protect Your Value

• Highlight improvements and condition
• Select an evaluation method or platform
• Pay attention to the timing.

5. 2025 Update: Current Ontario & Canada Context

• Homeowners can control this process by using digital/online home appraisal platforms, which lessen dependency on a small number of comps and allows homeowners to input high-quality images and data.

Example 

 A couple in Ottawa used HomeAppraised and shared their experience.

Since there haven't been many recent sales in their neighborhood, the appraiser originally reduced their worth less than they had hoped. But their internet estimate was $35,000 higher than the first report because they included thorough renovation receipts and recent neighbor sales. When , they utilized that as leverage.

FAQs

Q1: Is it true that my home's value is impacted by out-of-date or distant comparables?

Yes, the appraiser may dismiss the comp if it is too distant or older than six months. Your reported value is weakened as a result. 

Q2: Will my home's appraisal increase if I make improvements?

Not all the time. Improvements are helpful, but you might still reach a ceiling if the comps are poor. Make sure you record and turn in any necessary upgrades.

Q3: When comparisons are weak, are online appraisals trustworthy?

Yes, you can submit high-quality images and other information to your listing on sites like HomeAppraised, which strengthens your case, particularly in markets with less strong competitors.

Q4: What if my appraisal turns out to be significantly less than I anticipated?

Find out from your broker or lender if you can request a value reconsideration or submit further comps. It helps, but it doesn't ensure a transformation.

About the Author

Written by the HomeAppraised Team 

Ontario’s trusted online home appraisal platform. We provide free, quick, and accurate value estimates verified by  qualified appraisers.

Disclaimer

This post is not a professional appraisal or financial advice; it is mainly meant to be informative. Since every property is different, values can differ. For a thorough evaluation, always seek the advice of a certified appraiser.