Are you looking to sell your property? If you're unsure whether to assess your home’s value yourself or hire a professional, consider this: while it's possible to estimate the price on your own, a licensed appraiser or a real estate broker can provide a much more accurate evaluation.
Let’s take a closer look at the two professionals who can help determine your property’s value.
Market value vs. municipal value
Don’t make the mistake of selling your home based on its municipal value, and never let a client negotiate a price reduction using this figure. Why? Because it doesn’t reflect your home’s true market value.
Here’s why: municipalities hire licensed appraisers every three years to evaluate properties within their jurisdiction. The purpose of this evaluation is to determine property taxes, not to reflect the current market value of homes.
This municipal evaluation is inherently outdated. Not only is it conducted only once every three years, but the assessment is also valid for just 18 months before a new evaluation takes effect. In real estate, three years can feel like an eternity. Just look at these facts:
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+39.3%: increase in real estate prices in Sherbrooke between March 2020 and March 2021
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+27.9%: increase in real estate prices in Gatineau
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+28.3%: increase in Saguenay
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+22.4%: increase in Montreal
Take Montreal for example, the city raised its municipal tax by an average of 4.1% for the 2023, 2024, and 2025 fiscal years. That’s far from the 22.4% increase in property prices in just one year.
Relying on the municipal evaluation could result in selling your home for much less than its market value, causing you to miss out on significant profit. Always consider the market value for a more accurate and beneficial sale price.
The certified appraiser: an accurate assessment of market value
In Quebec, a certified appraiser is a qualified expert who is a member of the Ordre des évaluateurs agréés du Québec (OEAQ), ensuring that they are more than just an unqualified real estate advisor.
The primary role of a licensed appraiser is to objectively assess a property, determine its market value, and prepare a detailed appraisal report. This process is thorough, and the resulting report typically spans 30 to 40 pages, providing a comprehensive and reliable valuation of your property.
When to call a certified appraiser?
A certified appraiser can be valuable in several situations. Their report can serve important purposes, such as for insurance, refinancing, or in the case of divorce or separation when dividing family assets.
You may also choose to hire a certified appraiser to assess the value of a home you’re planning to sell or buy, especially if you prefer not to work with a real estate broker.
What are the advantages of a certified appraiser?
Hiring a licensed appraiser offers several key benefits, including:
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Impartiality and ethical standards
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Ensuring adequate property insurance
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Evaluation of rental property performance
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Professional liability insurance
Let’s take a closer look at these 4 points
1. Impartiality and ethical standards
The appraisal of a property can have serious consequences, particularly if the person conducting the appraisal has a personal interest in the sale. Hiring a licensed appraiser ensures that you receive an impartial opinion on the actual value of the property, as they have no stake in inflating or deflating its value.
What guarantees the integrity of a licensed appraiser is the regulation governing their profession by the Ordre des évaluateurs agréés du Québec (OEAQ), the professional body to which they belong. This regulation ensures that appraisers adhere to strict ethical standards, maintaining objectivity and professionalism in their work.
2. Ensuring adequate property insurance
Underinsurance is a serious concern in the event of a claim because the insurance payout may not match the property's true replacement value.
A licensed appraiser's evaluation is crucial for determining the accurate reconstruction value of the property, allowing you to adjust your insurance policy accordingly. This ensures that your property is adequately covered in case of damage or loss. Additionally, their involvement has become mandatory for divided co-ownerships under the enactment of Law 141, further emphasizing the importance of an accurate property assessment for proper insurance coverage.
3. Evaluation of rental property performance
When buying a property, it doesn't always mean you plan to live in it. In the case of a rental property, a licensed appraiser can evaluate its market value based on its income performance. This includes considering factors such as rent amounts, operating expenses, vacancy rates, bad debts, and other income-related elements. Their expertise helps you understand the potential return on investment, making it easier to assess whether the property is a good financial decision.
4. Professional liability insurance
In some cases, a client may not be satisfied with the work done by the licensed appraiser. If this happens, the appraiser’s professional liability insurance can be activated to compensate for any damages.
This added layer of protection ensures that the appraiser is accountable for their work, providing peace of mind for clients.
What are the disadvantages of a certified appraiser?
While hiring a licensed appraiser has its advantages, there are two main disadvantages to consider:
1. The licensed appraiser is expensive, but worth it
The cost of an appraisal can vary significantly depending on the type of property (e.g., condo, single-family home, multi-unit building), the appraiser's experience, and other factors. Prices typically range from $400 to $1,000.
While paying around $650 for a complete appraisal report may seem expensive, the detailed insights it provides can help you navigate negotiations with potential buyers. Most importantly, it ensures you know the minimum price at which you should sell, preventing you from underselling your property.
2. The negotiation pitfall
Using the appraisal report too early in negotiations can backfire. Buyers may rely too heavily on the objective price provided, making them less willing to pay more for the property. In this case, the appraisal could limit your ability to negotiate a higher price. The key is to use the appraisal wisely and strategically in your negotiations to avoid restricting your options.
The real estate broker: estimating the selling price of your home
A real estate broker is a professional who must adhere to the ethical rules set by the Organisme d'Autorégulation du Courtage Immobilier du Québec (OACIQ).
Can they assess the selling price of a home? Yes, but it's not their primary skill. While brokers can help determine a home's selling price, their expertise typically comes into play during the transaction process. As we’ll see, their role is usually more focused on facilitating the sale and guiding you through the negotiation and closing stages.
When to call a real estate broker?
You should work with a real estate broker when you're planning to buy or sell a property, regardless of whether you've had an appraisal done. Their expertise goes far beyond just estimating the value of the property.
A real estate broker will provide you with valuable insights about the neighbourhood, including information about nearby schools, hospitals, public transportation networks, noise levels (such as the presence of an airport or railway line), and potential sources of pollution (like an incineration plant). This comprehensive knowledge helps you make an informed decision during the buying or selling process.
What are the advantages of a real estate broker?
There are several advantages to having your property evaluated by a real estate broker:
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Access to the Centris System
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The service is free if you are a buyer
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The evaluation is quick
1. Access to the Centris System
Real estate brokers have access to the Centris system, which is a comprehensive database of property listings and sales in Quebec. This allows them to perform a detailed market analysis, ensuring they can provide an accurate evaluation of your property based on comparable properties in the area.
2. The service if free if you are a buyer
If you're a buyer, the service provided by the real estate broker is generally free of charge. Brokers are typically compensated by the seller, so you can take advantage of their expertise without any direct cost to you.
3. The evaluation is quick
Unlike a certified appraisal, which can take time and be more expensive, a real estate broker’s evaluation is generally much quicker. They can provide an estimated selling price based on their knowledge of the local market, comparable sales, and other relevant factors, often giving you a solid idea of your home’s value in a short amount of time.
What are the disadvantages of a real estate broker?
However, the real estate broker also has its disadvantages:
- It is expensive if you are the seller.
- Its evaluation is not followed by a report and has no legal value.
1. Cost to the seller
One of the major drawbacks is the cost. If you're the seller, the broker typically charges a commission, which ranges from 4% to 7% of the sale price. While this is a percentage-based fee, it can add up significantly, especially for higher-priced homes. It's also important to note that this commission covers more than just the broker's services; advertising, marketing costs, and sometimes the commission for the buyer's broker are also included.
In a competitive market like Quebec, some brokers may lower their commission rates to attract more clients, so it’s a good idea to shop around and compare rates before committing.
2. Lack of legal value for the evaluation
Although a real estate broker's evaluation is useful and based on their knowledge of the local market, it doesn't carry the same legal weight as an appraisal from a licensed appraiser. You can't use it for purposes like determining a property's reconstruction value for insurance purposes, nor will it be accepted by banks during a mortgage refinance process.
This is also why the broker’s evaluation doesn’t come with a full report, it’s simply an estimate rather than a formal document with legal standing.
Evaluating your own home’s price: a good idea?
Generally, it's not recommended to evaluate your own property, as doing so requires a specific set of skills that go beyond a casual understanding of real estate, such as:
- Knowledge of real estate
- Financial skills
- Mathematical skills
Looking for an expert to determine your property's market value?
XpertSource.com can help you find a certified appraiser or a real estate broker. When you tell us about your project, we put you in touch with qualified resources for FREE. Simply fill out our form ( it only takes a few minutes ) and we will connect you with professionals.
