According to the Canadian Real Estate Association, an Opinion of Value:
“…means an estimate of the value of specified interests in, or aspects of, identified real estate which may be based wholly or partly on comparative market analyses. An Opinion of Value may contain more or less analysis of relevant data than an appraisal and may be performed by a REALTOR®.”
An Opinion of Value or OPV is not the same as an appraisal; unlike an OPV, appraisals are used to determine extensive information, such as property details in the public record, details for mortgage lenders, and more.
Only a qualified appraiser can conduct an appraisal for you. That means holding a designation from the Appraisal Institute of Canada or the Canadian National Association of Real Estate Appraisers. Some real estate professionals are also qualified appraisers, so it may be a service that your broker or salesperson offers. Note that you will likely have to pay for the appraisal if it’s not a service included in your listing agreement.
An Opinion of Value is important in determining your property’s value and what price it can be listed at and it allows for deeper market analysis, as well as property analysis. Your REALTOR® will review your property, the value of any renovations or updates, comparable properties (listed or recently sold), neighbourhood details, amenities, and more.
Why would I need an Opinion of Value?
An Opinion of Value may be requested by a lender for the refinancing of a mortgage or a foreclosure. The homeowner might also need an OPV if they are looking to make changes to their mortgage either through a sale or a refinancing. An OPV may be preferred because the service could cost much less and be completed more quickly than an appraisal of the property. Homeowners will also likely need an Opinion of Value for lawyer proceedings in separations, estate sales and when obtaining a title insurance policy.
How much does an Opinion of Value cost?
For the purpose of a sale, a REALTOR® may include the cost of an OPV in the listing agreement, and while there is no standard amount REALTORS® charge for the letter, they can cost an average of $200 – $400 each. REALTORS® will often waive or reimburse this fee if the recipient decides to list with them.
