….It All Depends on the Property… and You!”
One of the most common questions I hear from clients and even realtors is, “Why did my neighbour get their mortgage approved without an appraisal, but I have to pay $600 for one?” Or, “Why did this property only need a quick desktop valuation while my client’s took three weeks and a full inspection?” The answer? Not all appraisals are created equal—and not all properties or clients are treated the same.
Lenders choose appraisal types based on risk, property type, and borrower profile. It’s not personal. It’s not random. It’s about making sure the property—and the person buying it—fits within the lender’s risk appetite.
Understanding which properties and clients trigger which kinds of appraisals can help you set expectations and avoid surprises. Let’s walk through it together.
Here’s What We’ll Cover:
When Lenders Use Desktop Appraisals
When Lenders Use Drive-By Appraisals
When Lenders Require Full Appraisals
How Realtors and Clients Can Use This Knowledge
When Lenders Use AVMs
AVM stands for Automated Valuation Model. It’s basically a computer-generated estimate based on data from MLS sales, tax records, and market trends. No human ever visits the property, and it costs the client nothing.
Who gets this?
- Well-qualified clients (strong credit, good income, clean applications).
- Standard properties in suburban neighborhoods where lots of comparable sales exist.
- Low-risk deals: refinances under 65% loan-to-value, renewals, or insured mortgages with conservative lending profiles.
Example:
I had a client refinancing their detached home in Ajax. Prime credit, 50% equity, steady income—AVM approved the value in minutes. No cost, no waiting. Easy-peasy.
When Lenders Use Desktop Appraisals
A desktop appraisal is completed by a licensed appraiser, but they never leave their office. They use MLS, photos, tax records, and prior listings to estimate the value. It’s more detailed than an AVM but still doesn’t require a site visit.
Who gets this?
- Clients with solid applications but properties with a quirk (older condo buildings, small-town subdivisions, etc.).
- Lenders who want a human opinion but not a full inspection.
- Mid-range LTV refinances, sometimes lower-risk purchases.
Example:
A realtor I work with had a client refinancing an older Toronto condo where the AVM kicked it back. The lender ordered a desktop appraisal, and within a couple of days, we had what we needed to move forward.
When Lenders Use Drive-By Appraisals
A drive-by appraisal means the appraiser physically drives past the property, takes exterior photos, and confirms it still looks like a house and not a demolition site. They don’t go inside. They combine this visual with data to form a valuation.
Who gets this?
- Rural properties where condition is questionable.
- Rental properties where lenders need minimal confirmation of condition.
- Situations where the lender feels eyes-on confirmation is prudent but doesn’t need the full inspection.
Example:
One of my clients owned a rental duplex up north. The lender wanted proof it wasn’t sinking into the ground. A drive-by confirmed it looked fine, and the deal sailed through.
When Lenders Require Full Appraisals
This is the gold standard—a full interior and exterior inspection, detailed report, comparable sales analysis, and usually a hefty report with photos and measurements. The appraiser walks through the home, notes condition, updates, and quirks.
Who gets this?
- Properties with unique features (custom homes, rural properties, heavily renovated spaces).
- High LTV purchases.
- Borrowers with weaker profiles (lower credit, non-traditional income).
- Refinances pulling significant equity out.
Example:
I had a self-employed client buying a rural property outside of Port Perry. Non-traditional income, 20% down, and a home with all sorts of quirks. Full appraisal required. It wasn’t cheap, but it gave the lender the confidence to approve.
How Realtors and Clients Can Use This Knowledge
For Realtors:
Set realistic expectations early. If you’re selling a standard home in Whitby, your buyer might slide through with an AVM. Selling a hobby farm in Uxbridge? Prepare them for a full appraisal. Managing expectations means fewer panicked phone calls later.
For Homeowners:
If you’re refinancing or purchasing and want control over timelines and costs, ask me upfront what kind of appraisal is likely. That way, you can budget and plan properly without surprises.
Storytime: The Case of Two Neighbours, Two Appraisals
Last fall, I had two clients on the same street in Pickering. Both refinancing. Same type of house. Same lender. One had perfect credit, 40% equity, and stable income—approved through AVM instantly. The neighbour? Slightly higher debt, lower credit score, and trying to pull out more equity—full appraisal required.
Both were shocked when I explained why. It wasn’t about the house—it was about risk. One file sailed through, the other needed more reassurance for the lender.
Allen’s Final Thoughts
The type of appraisal a lender orders isn’t personal—it’s all about reducing risk and confirming value. Properties that are standard and clients who are financially strong usually get the quick, easy route. More unique properties, higher-risk files, or more aggressive borrowing needs trigger more scrutiny.
Knowing this ahead of time helps you plan, budget, and avoid frustration.
How I Can Help
As your mortgage agent, I do more than find you a rate—I navigate these behind-the-scenes decisions so you’re never caught off guard. I’ll advise upfront on what kind of appraisal is likely, why, and how we can work with it—or around it—to keep your deal moving.
If you’re a realtor or homeowner looking for clarity in the appraisal process, I’m here to explain it, simplify it, and make sure you’re fully prepared. Let’s get it done right, together.
