What Is an Appraisal and Why Does It Matter After a Firm Offer?
Understanding the Role of Appraisals in Home Sales
Once an offer becomes firm, both buyer and seller are legally bound to complete the transaction. However, when the buyer is obtaining mortgage financing, the lender usually requires an appraisal before releasing the funds.
An appraisal is an independent, professional estimate of a property’s market value, conducted by a certified appraiser hired by the bank or lender. Its purpose is to ensure the home’s value matches or exceeds the purchase price.
How an Appraisal Affects the Mortgage
The appraisal helps the bank determine how much money it is willing to lend.
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If the appraised value equals the purchase price, there’s no issue.
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If the appraised value is lower than the purchase price, the bank will lend based on the appraised value, not the agreed price.
📘 Example:
Purchase price = $1,000,000
Appraised value = $950,000
Lender offers 80% financing → $760,000 instead of $800,000.
👉 The buyer must cover the $40,000 shortfall from personal funds.
What If the Buyer Requests a Price Reduction After a Firm Deal?
If the deal is already firm, the seller has no obligation to renegotiate.
A buyer’s financing issue — including a low appraisal — does not release them from the contract. The buyer must still close, even if their bank reduces the loan amount.
In practice:
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Some buyers may ask for a price reduction or an early release for a second appraisal.
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Sellers may consider negotiating only if the market has changed significantly or if there’s a genuine risk the buyer cannot close.
Seller Tip:
Stay calm. Request a copy of the appraisal (if available) and consult with your agent and lawyer.
Unless both sides agree in writing to amend the deal, the original terms remain legally binding.
Why Low Appraisals Happen
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Rapidly changing market conditions
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Overbidding during multiple offers
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Lack of recent comparable sales
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Unique or custom-built homes that are hard to evaluate
Appraisers rely on recent comparable sales (usually within 90 days and 1–2 km).
In fast-moving markets, appraised values can lag behind real-time demand.
When Appraisal Gaps Threaten a Deal — Vendor Take Back (VTB) as a Solution
When a buyer’s mortgage falls short due to a low appraisal, one option to keep the deal alive is a Vendor Take Back (VTB) mortgage.
A VTB occurs when the seller acts as the lender and temporarily finances a portion of the purchase price for the buyer.
This arrangement allows the sale to proceed while giving the buyer time to secure full financing later.
Benefits:
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Helps close firm deals without price reductions.
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Provides the seller with interest income.
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Offers flexibility to both parties when the appraisal is lower than expected.
Important:
A VTB is a formal financial agreement and must be drafted by a lawyer, registered on title, and include clear terms on interest, repayment schedule, and default conditions.
Key Takeaways
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An appraisal is a bank tool to assess value, not a reason to change a firm deal.
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A low appraisal only affects the buyer’s financing, not the legal contract.
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Sellers are not required to lower the price after a firm offer.
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A Vendor Take Back (VTB) can bridge financing gaps and keep deals on track.
Contact The Fisher Group – Your Real Estate Experts in Oakville and the GTA
Fisher Yu
📱 647.598.8488
📧 [email protected]
🌐 thefishergroup.ca
什么是房屋评估（Appraisal）？
在加拿大的房地产交易中，如果买家通过银行贷款购房，银行通常会要求进行房屋评估。
这是由持证评估师完成的独立估值，目的是确认房屋价值是否与成交价匹配，从而保障贷款风险。
评估对贷款的影响
如果评估价与成交价一致，一切顺利。
但如果评估价低于成交价，银行只会以评估价为基准放贷，买家需要自掏腰包补足差额。
例如：
成交价 $1,000,000
评估价 $950,000
银行只按 $950,000 的 80% 放贷 → $760,000。
买家必须补足 $40,000 差额。
Firm Deal 之后评估价低怎么办？
当交易已是 Firm Offer（无条件成交） 时，买卖双方已经在法律上绑定。
即便评估价低，买家融资不足，也不能要求取消或降价，卖方没有义务重新协商。
只有双方书面同意修改条款，价格和条件才会改变。
为什么评估价会偏低？
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市场价格波动大
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抢 offer 抬价
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附近缺少可比成交
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房屋独特、难以评估
评估通常依赖 90 天内、2 公里内的成交案例，因此在市场变化快的时期，评估值往往滞后于真实买方需求。
当评估价太低时的应对方案：卖方回贷（Vendor Take Back）
若买家贷款金额不足，**VTB（卖方回贷）**是一种灵活解决方式。
卖家可暂时承担“小额贷款人”角色，帮助买家完成交接，买家之后分期连本带息还款。
VTB 的优势：
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让 Firm Deal 不至于流产
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卖家可赚取利息收益
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双方都获得时间缓冲，确保顺利过户
VTB 属于正式贷款协议，必须经律师起草、登记在产权上，并明确利率、期限和违约条款。
总结
房屋评估影响的是银行的贷款，而不是成交的合同。
Firm Deal 之后，卖方无须因评估价低而降价。
如果融资不足，Vendor Take Back 可以成为让交易顺利完成的“桥梁方案”。
