3 years ago
Don't know where their data is coming from, but th...
Don't know where their data is coming from, but they under evaluated my house by about 20-40%. Also what is quite peculiar, is that they have majority of the big banks contracts, when it comes to evaluation for mortgage and refinancing purposes. Let me be clear, if I was evaluating a property for secure lending purposes I would also leave a threshold delimiting the value of said asset for reasons related to if client defaults as well as the extra work/fees associated with dumping the asset at its lowest market value (quick sale while recouping the 100% principal + loss of interest). However minus 20-40% under evaluation, plus the fact u can only finance/refinance up to 80% of that under "value", we talking negative 40-60% of market value, which equates to roughly municipal evaluation in my neck of the woods. Clearly in banks favour which is understandable but over margined IMHO, but at the very least 20% in my situation. Shop around, also do not accept mortgages from banks who use only this company.
Update:09/2020
They are not part of the Appraisals Institute of Canada, Canadian National Association of Real Estate Appraisers nor Orders des Evaluators Agrees au Quebec. Not sure any of that matters as I have not compared best practices methods recommend vs used, but its highly questionable how they handle the evals for all major Canadian banks, yet not even a Canadian company.
Another questionable practice is how they delete high priced outliers but neglect to do the same with low priced outliers. If u have 5 identical properties (very rare), and one property sells for proportionally higher than all others due to renovations or amenities etc...yet one sells for proportionally lower (known defects, sold without warranty (Quebec ;-0), requires major renovations), how can it be included? This brings base values of all comparable homes down. In my opinion this is a flawed model and in favour of only the bank.
I will further research and report back. If you dont hear from me in 3 months they took care of me :-).