What Is a Letter of Opinion of Value? A Complete Guide for Ontario Homeowners, Executors & Estate Lawyers
Sunny Gawri Team | RE/MAX Realty Services Inc., Brokerage | 📍 Brampton, Mississauga & the GTA
Quick answer: A letter of opinion of value (also called an opinion of value letter or letter of opinion) is a written document prepared by a licensed real estate agent that states the agent's professional opinion of a property's fair market value, supported by an analysis of comparable sales. In Ontario, it is most commonly requested for probate and estate administration, capital gains reporting on inherited property, separation and divorce, estate planning, and pre-listing decisions. It is not a formal appraisal — appraisals are prepared by designated appraisers — but for many purposes a letter of opinion from an experienced local REALTOR® is accepted, faster to obtain, and often provided at no cost.
What Is a Letter of Opinion of Value?
A letter of opinion of value is a formal written statement in which a licensed real estate professional gives their considered opinion of what a property would likely sell for on the open market as of a specific date. It is based on a comparative market analysis (CMA) — a detailed review of recent sales of similar properties in the same neighbourhood, adjusted for differences in size, condition, lot, upgrades, and location.
The letter typically identifies the property, states the effective date of the valuation, describes the basis of the opinion (the comparable sales reviewed), gives a value or a value range, and is signed by the agent with their brokerage details. Because it comes from a registered real estate professional with direct access to MLS® sold data and day-to-day experience selling homes in the local market, it carries meaningful weight with lawyers, accountants, and financial institutions for many everyday purposes.
Who Needs a Letter of Opinion of Value in Ontario?
⚖️ Executors and Estate Trustees (Probate)
The most common request. When someone passes away owning real estate in Ontario, the estate trustee generally must report the fair market value of the property as of the date of death when applying for a Certificate of Appointment of Estate Trustee, because Estate Administration Tax is calculated on the value of the estate. A letter of opinion of value from a local REALTOR® is a widely used way to establish that date-of-death value. Estate lawyers frequently ask their executor clients to obtain one.
🧾 Accountants and Capital Gains Reporting
When a property that is not a principal residence changes hands — through inheritance, a deemed disposition at death, a change of use (for example, converting a home to a rental), or a transfer between family members — the fair market value at that moment matters for tax purposes. Accountants often request an opinion of value, sometimes retroactive to a historical date, to support the figures reported to the CRA.
💔 Separation and Divorce
Dividing family property starts with knowing what the home is worth. A letter of opinion gives separating spouses and their family lawyers a professional, documented starting point for negotiation — and where the parties agree to rely on it, it can avoid the cost of duelling appraisals.
📋 Estate Planning and Family Decisions
People updating wills, planning gifts to children, considering transferring a property into joint names, or deciding whether a family member should buy out the others often begin with an opinion of value so everyone is working from the same realistic number.
🏠 Homeowners Considering Selling
Before committing to list, many homeowners simply want a professional, written answer to "what is my home actually worth right now?" — grounded in real sold data rather than an automated online estimate.
Letter of Opinion vs. Appraisal vs. CMA vs. Online Estimate
These four terms get mixed up constantly. Here is how they differ:
| Document | Prepared By | Typical Cost | Best Used For |
|---|---|---|---|
| Letter of Opinion of Value | Licensed real estate agent (REALTOR®) | Often free or a nominal fee | Probate filings, capital gains support, separation, estate planning, pre-listing decisions |
| Formal Appraisal | Designated appraiser (e.g., AACI or CRA designation through the Appraisal Institute of Canada) | Paid professional fee | Mortgage lending, litigation, contested estates, situations where a lender, court, or the CRA specifically requires an appraisal |
| Comparative Market Analysis (CMA) | Licensed real estate agent | Free | Pricing strategy when listing a home; the underlying analysis behind a letter of opinion |
| Online Estimate | Automated algorithm | Free | Casual curiosity only — not accepted for probate, tax, or legal purposes |
The practical rule of thumb: if a lender, court, or government body specifically requires an appraisal, you need a designated appraiser. For many probate filings, tax-supporting documents, family decisions, and planning purposes, a well-prepared letter of opinion from an experienced local agent is accepted and is significantly faster and less expensive to obtain. When in doubt, ask the lawyer or accountant handling your matter which document they need — and if they say a letter of opinion is sufficient, an experienced local REALTOR® can usually prepare one within a few days.
What Does a Letter of Opinion of Value Include?
A properly prepared letter of opinion typically contains the full property address and legal description, the effective date of the valuation (which may be a current date or a historical date, such as a date of death), a brief description of the property and its condition, a summary of the comparable sold properties reviewed, the agent's opinion of fair market value (a single figure or a supportable range), any assumptions or limiting conditions, and the agent's signature, registration status, and brokerage information.
For estate and tax purposes, the effective date matters enormously. An experienced agent can prepare a retroactive opinion of value — for example, the value of a Brampton home as of a date of death two years ago — by researching what comparable homes actually sold for around that date, not what they are worth today.
How Is a Letter of Opinion of Value Prepared?
The process is straightforward. The agent gathers property details (a visit is ideal, though for retroactive or out-of-province-executor situations it can sometimes be prepared from records and photos), researches comparable MLS® sales near the effective date, adjusts for differences between the subject property and the comparables, forms an opinion of fair market value, and issues the signed letter on brokerage letterhead. For most properties, the turnaround is a few days — dramatically faster than many alternatives, which is often important when a probate application or tax deadline is waiting on the number.
How Much Does a Letter of Opinion Cost in Ontario?
Practices vary, but many experienced agents — including the Sunny Gawri Team — provide letters of opinion at no cost, particularly for executors, families, and homeowners in the communities they serve. It is part of building long-term relationships: the executor who needs a probate valuation today is often the family that needs to sell the property in a few months. Formal appraisals, by contrast, always involve a professional fee. Always confirm cost up front with whoever prepares your document.
Letters of Opinion for Probate in Brampton, Mississauga & the GTA
The Sunny Gawri Team at RE/MAX Realty Services Inc., Brokerage regularly prepares opinion of value letters for executors, estate trustees, estate lawyers, and accountants across Brampton, Mississauga, and the Greater Toronto Area — including retroactive date-of-death valuations for probate and Estate Administration Tax purposes. With over a decades worth of combined local sales experience and direct access to historical MLS® sold data across every Brampton and Mississauga neighbourhood, we can prepare a professional, well-supported letter quickly — and guide the family through the eventual sale of the property if and when that time comes.
If you're an executor or family member navigating an estate property, our estate and probate real estate services page covers the full process — or start with a free home evaluation.
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Request a Free Opinion of Value →Frequently Asked Questions — Letters of Opinion of Value
Is a letter of opinion of value the same as an appraisal?
No. A letter of opinion is prepared by a licensed real estate agent based on comparable sales, while a formal appraisal is prepared by a designated appraiser (such as an AACI or CRA designation through the Appraisal Institute of Canada) and involves a professional fee. Many probate, tax-supporting, and family purposes accept a letter of opinion; mortgage lenders, courts, and some contested matters specifically require an appraisal.
Is a letter of opinion of value accepted for probate in Ontario?
A letter of opinion from a licensed real estate agent is a widely used way to establish the fair market value of estate real estate as of the date of death for probate and Estate Administration Tax purposes in Ontario, and estate lawyers commonly ask executors to obtain one. In some situations — such as contested estates — a formal appraisal may be required, so always confirm with the estate lawyer handling the application.
Can a letter of opinion be prepared for a past date, like a date of death?
Yes. An experienced agent can prepare a retroactive opinion of value by researching comparable properties that actually sold around the historical effective date — for example, the date of death for probate or the date of a change in use for tax purposes.
How much does a letter of opinion of value cost?
Many experienced agents, including the Sunny Gawri Team, provide letters of opinion at no cost for homeowners, executors, and families in the communities they serve. Formal appraisals by designated appraisers always involve a professional fee. Confirm cost up front with whoever prepares your document.
How long does it take to get a letter of opinion of value?
For most properties, a few days from the initial request — the agent needs to review the property, research comparable sales for the effective date, and prepare the signed letter. This is typically much faster than arranging a formal appraisal, which matters when probate applications or tax deadlines are waiting.
Who prepares letters of opinion of value in Brampton and Mississauga?
The Sunny Gawri Team at RE/MAX Realty Services Inc., Brokerage — 295 Queen Street East, Brampton, ON L6W 3R1 — prepares opinion of value letters for executors, estate lawyers, accountants, and homeowners across Brampton, Mississauga, and the GTA, including retroactive date-of-death valuations for probate. Call 647-400-2620 or email [email protected].
Related reading: Estate & Probate Real Estate Services · Free Home Evaluation · Brampton Communities
This article is provided for general information only and does not constitute legal, tax, or appraisal advice. Requirements for probate applications, Estate Administration Tax, CRA reporting, and court or lender valuations vary by situation — always confirm the type of valuation document required with the lawyer, accountant, lender, or institution handling your matter. Sunny Gawri Team — RE/MAX Realty Services Inc., Brokerage. Not intended to solicit buyers or sellers currently under contract with a brokerage.
