Who orders the appraisal?
Who REALLY orders the appraisal — Buyer, Seller, or the Bank? Read this before you list.
Quick answer: Who orders the appraisal?
Most of the time the lender (the bank or mortgage company) orders the appraisal. The buyer pays for it as part of their mortgage process. But sellers can and should order a pre-listing appraisal to control price risk, speed up the sale, and avoid surprises.
Why this matters for Milton, Ontario home sellers
Milton is hot. Prices move fast. Buyers arrive with financing conditions, and lenders demand appraisals to protect their loans. If the lender’s appraisal comes in low, buyers may ask for price cuts, renegotiate, or walk away — and that costs you time, money, and leverage in a competitive market.
A pre-listing appraisal and a professional home inspection give you power. They show buyers and lenders that your price is justified. They remove leverage from buyers who try to use a low bank appraisal to force a deal down.
Appraisal vs. Home Inspection — know the difference
- Appraisal: Ordered by the lender to confirm market value for mortgage approval. Focuses on comparable sales, the property’s condition in relation to market value, and any features that affect value.
- Home inspection: Ordered by the buyer (or seller for pre-listing) to identify safety issues, defects, or maintenance needs. Focuses on structure, systems, and repairs.
Both are useful. They serve different audiences. For sellers in Milton, use both strategically.
Typical appraisal process in Milton (step-by-step)
- Buyer applies for a mortgage. The lender orders an appraisal.
- Licensed appraiser inspects the property (interior + exterior) or performs a desktop appraisal depending on loan type.
- Appraiser researches recent comps in Milton, looks at upgrades, lot size, neighbourhood, and market activity.
- Appraiser delivers a report to the lender.
- If the appraisal matches or exceeds the agreed sale price, the mortgage proceeds. If it’s lower, the buyer and seller must renegotiate or the buyer must increase the down payment.
Who pays for the appraisal?
- Lender-ordered appraisal: Paid by the buyer (borrower) in most cases.
- Pre-listing or seller-ordered appraisal: Paid by the seller.
- Cash buyers: No lender appraisal required, but a buyer may still order one for their records.
In Milton, appraisal fees vary. Expect roughly CAD $300–$600 for a standard single-family home appraisal. More for large properties or complex condos.
Common appraisal issues Milton sellers face
- Fast market comps skewing value expectations.
- Unique upgrades not reflected in comparable sales.
- Basement conversions or illegal suites that change value or require disclosure.
- Recent nearby sales that are poor comps (e.g., distressed sales or atypical deals).
You must anticipate these. Don’t assume the bank sees what you see. Prepare documentation: receipts for upgrades, building permits, and a list of recent improvements.
How a pre-listing appraisal helps you win
- Validates your asking price for buyers and their lenders.
- Reduces appraisal-related renegotiation risk.
- Helps price the home aggressively but realistically.
- Highlights value-adding upgrades so they count in the numbers.
Think of a pre-listing appraisal like paying for confidence. It costs a few hundred dollars, but it can prevent tens of thousands lost to low appraisals or discounts.
How a professional home inspection protects your sale
Order a pre-listing home inspection. It identifies issues buyers will find. Fixing a few targeted items — roofing, HVAC, electrical — can keep buyers from using inspection findings as leverage.
A clean inspection report speeds offers, creates stronger buyer confidence, and often nets better offers in Milton’s market.
What to do if the bank appraisal comes in low
- Ask for the appraisal report and review the comps used.
- Provide the lender with recent sales you believe are more accurate, plus receipts and permits for improvements.
- Consider a second appraisal (rare but possible), or a review appraisal requested by the lender.
- Negotiate with the buyer: split the gap, reduce closing costs, or adjust terms. Or, if the buyer can’t proceed, relist and target cash buyers.
This is why preparation is everything. A pre-listing appraisal removes the surprise.
Simple prep checklist for Milton sellers (do this before listing)
- Get a pre-listing appraisal and home inspection.
- Gather receipts, permits, and a list of upgrades.
- Clear clutter, fix minor repairs, and improve curb appeal.
- Ask your Realtor for a comparable sales package tailored to Milton neighbourhoods.
- Discuss appraisal strategies with your agent: target price, buyer types, and timing.
How to choose the right appraiser in Milton
- Look for licensed Canadian residential appraisers with local Milton experience.
- Check recent appraisal work in your neighbourhood.
- Ask for references and a sample report outline.
- Choose someone who communicates well and delivers on deadline.
Your Realtor should recommend reliable appraisers. A good appraiser + a strategic Realtor gives you a one-two punch.
Real-world scenarios Milton sellers face
Scenario A — Bank appraisal supports the price: Smooth mortgage approval, quick closing.
Scenario B — Bank appraisal comes in low: Buyer asks for price reduction or larger down payment. Sale at risk.
Scenario C — Seller ordered pre-listing appraisal: Price stands, buyer confidence rises, fewer renegotiations.
Which scenario do you want? The one where you control the outcome.
Pricing strategy tied to appraisal thinking
Price to attract offers but back it with data. If you price high without evidence, the lender’s appraisal can kill the deal. If you price too low, you leave money on the table. Get an appraisal and a targeted pricing plan based on Milton comparables.
Final checklist: protect your sale from appraisal surprises
- Order a pre-listing appraisal.
- Get a pre-listing home inspection.
- Compile documents and permits for upgrades.
- Clean and present the home to maximize appraised value.
- Work with a Realtor who knows Milton market nuances.
Want help navigating appraisals and inspections in Milton?
If you’re selling in Milton and want no surprises at closing, talk to a local expert who knows the appraisers, the lenders, and the buyers in this market.
Contact: Tony Sousa — Local Milton Realtor
Email: tony@sousasells.ca
Phone: 416-477-2620
Website: https://www.sousasells.ca
Get a pre-listing inspection or appraisal before you list. One small investment now saves money and stress at closing.
FAQ — Home Inspections & Appraisals for Milton, Ontario Sellers
Q: Who orders the appraisal when my home is being sold?
A: The buyer’s lender usually orders the appraisal for mortgage approval. The buyer typically pays for it. Sellers can order a pre-listing appraisal at their own cost.
Q: Can a seller challenge a low appraisal?
A: Yes. You can provide additional comparables, permits, and receipts to the lender. The lender may review the appraisal or order a second opinion.
Q: Should I get a pre-listing appraisal in Milton?
A: Yes. In a fast or shifting market like Milton, a pre-listing appraisal reduces risk, supports your price, and speeds closing.
Q: How much does an appraisal cost in Milton?
A: Expect about CAD $300–$600 for a standard single-family home. Complex properties cost more.
Q: Who pays for repairs from a home inspection?
A: Negotiable. Often buyers request repairs or credits after their inspection. A pre-listing inspection lets you fix issues beforehand to avoid last-minute demands.
Q: Will upgrades increase my appraisal value?
A: Some upgrades help (kitchens, bathrooms, permitted additions). Always provide receipts and permits so the appraiser can count them.
Q: What if the buyer is paying cash?
A: Cash buyers may skip the lender appraisal, reducing the risk of a low bank valuation. But buyers might still order inspections or independent appraisals.
Q: How long does an appraisal take in Milton?
A: Typically 1–2 weeks from order to report, depending on appraiser availability and report complexity.
Q: Can I choose the appraiser the lender uses?
A: No. Lenders select appraisers to avoid conflicts of interest. But sellers can hire a private pre-listing appraiser.
Q: Does a desktop appraisal count?
A: Desktop appraisals use public data and comps without a physical visit. Lenders sometimes accept them for low-risk loans, but they can be less accurate in a fast market like Milton.
If you want a copy of a pre-listing inspection checklist, a list of local appraisers, or a customized pricing plan for your Milton home, reach out now.
Contact: Tony Sousa — Local Milton Realtor
Email: tony@sousasells.ca
Phone: 416-477-2620
Website: https://www.sousasells.ca
