Navigating Appraisal Challenges in Today's Real Estate Market

Josh Perez • September 4, 2024

As an appraiser, one of the most frequent questions I receive in today's market is whether we're seeing a lot of purchase activity and how appraisal values are holding up against the prices buyers are paying. The truth is, it varies depending on the area and the type of property, but certain trends are becoming increasingly clear.

"I've seen a lot of issues with value, and I'm sure you've experienced some of those issues with me, where purchasers might've paid 1.3 million at the height of the market and now their appraisals coming in at 1.1 or even less sometimes."

One area where we're seeing consistent issues is with new builds. Homes that were purchased at the peak of the market, particularly in 2021 or early 2022, are now facing challenges when it comes to appraisal values. The market has shifted, and in some cases, the price that buyers paid a year or two ago simply doesn't align with the current appraised value.


This discrepancy is particularly pronounced in specific developments, especially in areas where housing developments have sprung up in less traditionally desirable locations, such as Caledonia or Paris. These are places where people might not have wanted to live a few years ago, but due to urban expansion, they found themselves purchasing homes. Unfortunately, these buyers are now finding that the homes they purchased for $1.3 million at the market's height are being appraised at $1.1 million or even less.


When it comes to appraisals, several factors come into play, such as proximity to comparable homes, square footage, and lot size. However, these elements can vary in importance depending on the type of property. For single-family homes, the lot size is often a significant factor, whereas for investor properties or multifamily homes, the number of rooms may take precedence over square footage or lot size.


Interestingly, while the specifics might vary, there's not much variation from lender to lender regarding how these factors are considered. Adjustments in appraisal values are based on open market evidence, and certain features, like in-ground pools, tend to have a consistent impact on value regardless of the individual circumstances. For example, a mid-range home with a pool might see a $50,000 difference compared to one without, while a luxury home could see a shift of $75,000 to $100,000.



In conclusion, navigating the current real estate market can be challenging, especially when it comes to understanding how appraisal values stack up against purchase prices. As we continue to see shifts in the market, it's essential for buyers and investors to stay informed and work closely with their appraisers to ensure they have a clear understanding of the factors that could impact their property's value.

Josh Perez
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Deposit vs. Down Payment: Key Differences for Homebuyers

By Josh Perez • February 18, 2026
When you’re buying a home, two terms often cause confusion: deposit and down payment . While they’re related, they serve very different purposes in the homebuying process. Here’s what you need to know. What Is a Deposit? A deposit is the money you provide when you make an offer on a property. Think of it as a show of good faith that proves you’re serious about purchasing. How it works : Typically, you provide a certified cheque or bank draft that your real estate brokerage holds in trust. If your offer is accepted, the deposit remains in trust until the deal moves forward. If negotiations fall through, the deposit is refunded. Connection to your down payment : Once the sale is finalized, your deposit becomes part of your total down payment. Why it matters : The amount is negotiable, but a larger deposit can make your offer more attractive in a competitive market. Keep in mind, however, that if you back out after conditions are removed, you risk losing your deposit. What Is a Down Payment? Your down payment is the amount you contribute toward the purchase price of your home when securing a mortgage. Minimum requirement : In Canada, the minimum down payment is 5% of the home’s purchase price. Anything less than 20% requires mortgage default insurance. Sources : Down payments can come from your savings, the sale of another property, RRSP withdrawals (through the Home Buyers’ Plan), a gift from family, or even borrowed funds. Example: How They Work Together Imagine you’re buying a $400,000 home with a 10% down payment ($40,000). When you make your offer, you provide a $10,000 deposit . Once conditions are met, that deposit is transferred to your lawyer’s trust account. At closing, you add the remaining $30,000 to complete your full down payment. The lender provides the rest—$360,000—through your mortgage. The Bottom Line Your deposit shows commitment and secures your offer, while your down payment is what makes the mortgage possible. Together, they work hand in hand to get you into your new home. 📞 If you’d like clarity on deposits, down payments, or any other part of the mortgage process, let’s connect. I’d be happy to walk you through it step by step.
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Is a 5% Down Payment a Mistake? Here’s the Unpopular Truth.

By Josh Perez • February 15, 2026
Discover why a 5% down payment isn’t always irresponsible. Learn when a low down payment is a smart financial move for Ontario homebuyers and when it’s a risk.