Knowing what your home is worth matters when you sell, refinance, open a home equity line of credit, settle an estate or simply track your net worth. Canada has five main ways to put a number on it: a free online estimate, the municipal assessment, an agent’s comparative market analysis, a professional appraisal, and the lighter desktop or drive-by appraisal some lenders accept. This page compares them, explains what each one misses and shows which one each situation calls for. It is part of our guide to property types in Canada. Investors use the same methods to set an offer or estimate an after repair value for a renovation.
Home valuation methods compared
| Method | Who produces it | What it’s based on | Cost to you | Typical use |
|---|---|---|---|---|
| Online estimator (AVM) | A website’s algorithm | Recent sales, property records and listing data | Free | Quick ballpark, tracking the trend |
| Municipal assessment | Your province’s assessment authority | Mass appraisal as of a valuation date | None (sent automatically) | The basis for property tax |
| Comparative market analysis (CMA) | A real estate agent | Recent sales and current listings nearby | Usually free | Pricing a home to sell, general planning |
| Professional appraisal | A designated appraiser | An inspection and adjusted comparable sales | A fee | Financing, legal and tax purposes |
| Desktop or drive-by appraisal | An appraiser, without a full interior inspection | Data, photos or an exterior view | Set by the lender | Some lender decisions |
Online home value estimators (AVMs)
Automated valuation models use algorithms, recent sales data, property records and market trends to estimate a home’s value. Many brokerage and listing websites offer one for free, and some lenders run their own models when deciding on a refinance or a home equity line of credit.
How AVMs work
| Data used | What it tells the algorithm |
|---|---|
| Recent comparable sales | What similar homes sold for nearby |
| Property characteristics | Size, age, lot size, number of bedrooms and bathrooms |
| Tax assessment data | Baseline property details |
| Local market trends | Price direction and momentum |
| Listing history | Previous sale prices and listing prices |
A quick way to sanity-check an estimate is to compare its price per square foot with recent sales of similar homes nearby; our guide on how to calculate square footage explains price per square foot and what counts toward a home’s living area.
When AVMs are more and less accurate
| Factor | More accurate | Less accurate |
|---|---|---|
| Location | Urban or suburban areas with many sales | Rural or low-volume areas |
| Property type | Standard detached, semi-detached, condo | Unique, custom-built, heritage homes, acreages |
| Recent sales | Many recent comparables | Few or no recent sales nearby |
| Renovations | Standard condition | Major upgrades (kitchen, additions) not in public data |
| Price range | Homes priced like most of the neighbourhood | High-end homes with few comparable sales |
| Income properties | Rental income isn’t part of the estimate | |
| Market conditions | Stable market | Rapidly rising or falling market |
What AVMs can’t see
| Factor | Why it matters |
|---|---|
| Interior condition | A renovated home can be worth much more than a dated one of the same size |
| Kitchen and bathroom quality | Finishes move the price, and public records don’t show them |
| Basement finishing | A finished basement adds value an algorithm may not capture |
| View and orientation | A park view or a parking-lot view, south-facing or north-facing |
| Position on the street | Lots on the same street can sell for noticeably different prices |
| Unique features | In-law suites, pools and workshops are hard for a model to price |
| Deferred maintenance | An old roof or foundation problems aren’t in the data; the model assumes average condition |
An online estimate is a starting point: it gives a quick ballpark, but it can’t see the inside of your home.
Municipal property assessment
Each province has an assessment system that values property for property tax, usually by mass appraisal as of a set valuation date. The assessed value isn’t meant to be today’s market value:
- Ontario: the Municipal Property Assessment Corporation (MPAC) assesses property. Because the province-wide reassessment has been postponed, assessments for the 2026 tax year are still based on values as of January 1, 2016.
- British Columbia: BC Assessment values property as of July 1 of the year the assessment roll is completed.
- Alberta: municipal assessors prepare assessments every year.
Other provinces have their own authorities and cycles; your assessment notice states the valuation date. If you think an assessment is wrong as of that date, see appealing your property assessment.
Why assessed value isn’t market value
| Factor | Assessment | Market value |
|---|---|---|
| Timing | As of the valuation date, which can be years ago | Current as of today |
| Methodology | Mass appraisal (statistical models), usually without an interior inspection | Individual property analysis |
| Renovations | May not be captured | Directly affect value |
| Purpose | Tax calculation | What a buyer would actually pay |
Comparative market analysis (CMA)
A CMA is a report from a real estate agent that estimates a home’s value from recent sales of similar homes, current competing listings and listings that failed to sell, adjusted for differences in size, condition and features. Agents usually prepare one at no charge when hoping to list the home, so it can lean high; our guide to the comparative market analysis explains how agents build one and how to read it.
Professional appraisal
An appraisal is a formal opinion of value from a designated appraiser (the Appraisal Institute of Canada’s designations are AACI and CRA), based on an inspection and adjusted comparable sales, and owners and lenders order one for financing, legal matters such as a separation, and tax purposes. Our guide to home appraisals in Canada covers what the appraiser checks, typical costs and timelines, and what to do if the value comes in low.
Desktop and drive-by appraisals
For some lending decisions, such as a refinance or a home equity line of credit, a lender may accept a lighter-touch valuation instead of a full appraisal. The lender decides which kind a loan needs.
| Type | What it involves |
|---|---|
| Desktop appraisal | An appraiser reviews data and photos without visiting |
| Drive-by appraisal | An appraiser views the exterior only and reviews comparables |
| Automated valuation | A lender’s model estimates the value from sales data |
Which valuation each situation calls for
| Situation | Method | Why |
|---|---|---|
| Thinking about selling | Online estimate plus a CMA | The free combination gives a range |
| Refinancing a mortgage | Whatever the lender orders, usually an appraisal | It sets how much you can borrow |
| Applying for a home equity line of credit | Appraisal or automated valuation (the lender decides) | It sets your credit limit |
| Appealing property tax | Evidence of value as of the valuation date | The appeal is about the assessed value on that date |
| Separation or divorce | Professional appraisal | A documented value both sides can rely on |
| Estate or inheritance | Professional appraisal | At death, capital property is deemed sold at fair market value, which the estate has to support |
| Checking your equity | Online estimate | Free, instant and close enough for planning; the home equity calculator shows what you could borrow against it |
Tracking your home’s value over time
| Step | How |
|---|---|
| Baseline | The purchase price, or a CMA or appraisal around the time you buy |
| Comparable sales | Watch what similar homes nearby sell for, through listing sites or an agent |
| Assessment | Read each new assessment notice, keeping its valuation date in mind |
| Renovations | Keep a record of what you spent; our guide to renovations that increase home value covers which projects tend to pay back at resale |
| Upkeep | Deferred maintenance pulls value down; a seasonal home maintenance checklist keeps the big repairs on schedule |
| Yearly check | Compare an online estimate with recent comparable sales |
Insurance is a separate number: dwelling coverage on a home insurance policy is usually based on the cost to rebuild rather than the market value, so the two can move differently.
Sources
The figures and rules on this page come from these sources, last checked against them on September 25, 2026. How we check facts.
- BC Laws: Assessment Act
- MPAC: Request for Reconsideration (RfR)
- Tribunals Ontario: Filing an Appeal - Tribunals Ontario