A bank appraisal is usually ordered for the lender's financing decision. A private appraisal is ordered by a property owner, borrower, lawyer, accountant, estate trustee, business owner, or other client for their own defined purpose.
The property may be the same, but the authorized client, authorized use, report access, and authorized users may be different.
Quick Answer
A bank appraisal is typically for the lender's underwriting or risk decision.
A private appraisal is for the person or organization that orders the report and needs an independent value opinion for a specific use. If you need a value opinion for your own decision, for discussion with a professional advisor, for a legal or tax-sensitive context, or before approaching lenders, ask whether a private appraisal should be scoped for that use.
What Is A Bank Appraisal?
A bank appraisal, also called a lender appraisal or financing appraisal, is commonly ordered as part of a mortgage, refinancing, renewal, construction financing, or commercial lending process.
The lender uses valuation information as one part of its credit decision. The appraiser's authorized client may be the lender or another party specified in the assignment. The borrower may pay an appraisal fee, but that does not automatically mean the borrower is the appraiser's client, an identified report user, or able to use the report for another purpose.
That distinction matters.
If the appraisal was ordered for the lender, the report may be prepared for that lender's authorized use. The borrower may not receive a full copy. Even if the borrower sees a value number, that does not necessarily make the report suitable for estate, litigation, tax, business, or sale-planning purposes.
What Is A Private Appraisal?
A private appraisal is ordered directly by a property owner, borrower, business owner, lawyer, accountant, estate trustee, or other client who needs a value opinion for their own decision.
Private appraisals may be requested for situations such as:
- Pre-financing or refinancing planning.
- Sale or purchase decision support.
- Estate or date-of-death value support.
- Separation or matrimonial matters.
- Litigation or dispute support.
- Property tax assessment questions.
- Commercial property planning.
- Partner buyouts, business planning, or internal decision-making.
- Complex commercial, industrial, multi-family, office, retail, land, or special-use properties.
The Appraisal Institute of Canada describes appraisers as professionals who provide valuation, review, consulting, and other services, with value opinions supported by research and analysis. In a private appraisal, the assignment should be scoped around the client's authorized use and the authorized users identified for the assignment.
For a professional appraisal assignment, that scoping should be clear before the analysis begins: authorized client, authorized use, effective date, property type, report users, assumptions, and applicable professional standards all matter. The AIC CUSPAP standards make the client, use, and user questions central to reporting, not administrative afterthoughts.
Bank Appraisal vs Private Appraisal: Key Differences
| Question | Bank Appraisal | Private Appraisal |
|---|---|---|
| Who orders it? | Usually the lender or lending channel. | Property owner, borrower, lawyer, accountant, trustee, business, or other client. |
| Main purpose | Financing, refinancing, underwriting, or lender risk review. | The client's own decision or professional file. |
| Report users | Usually the identified lender or authorized users in that assignment. | The client and authorized users identified for that assignment. |
| Does the borrower always receive it? | Not necessarily. | Report delivery depends on the engagement terms; in many private assignments, the client receives the report. |
| Can it be reused? | Not automatically. | Only for the authorized use and users identified in the report. |
| Best fit | Lender's mortgage or credit decision. | Planning, legal, estate, tax, commercial, or independent decision support. |
Why Paying The Fee Does Not Always Mean The Report Is Yours
Borrowers are often surprised by this point. A lender may charge an appraisal fee to the borrower as part of the financing process. But the party paying the cost is not always the same as the appraiser's client.
The appraiser needs to know:
- Who the authorized client is.
- What the report will be used for.
- Who the authorized users are.
- What effective date of value is needed.
- What property rights are being valued.
- What assumptions, documents, and scope are required.
Those details affect the report. A lender-ordered appraisal may not be written for the borrower's separate use, even when the borrower pays a fee through the lending process.
When A Bank Appraisal May Be Enough
A bank appraisal may be enough when your only need is to complete the lender's financing process and you do not need your own independent report.
Examples:
- You are applying for a mortgage and the lender simply needs its own valuation step.
- You do not need to share the report with a lawyer, accountant, partner, trustee, buyer, seller, or other decision-maker.
- You do not need a separate value opinion for planning, negotiation, estate, tax, legal, or business purposes.
In that case, follow the lender's process and ask the lender what it requires.
When It May Be Worth Asking About A Private Appraisal
It may be worth asking about a private appraisal when you need your own value opinion, not just the lender's internal financing step.
Examples:
- You want to understand value before refinancing or approaching lenders.
- You are buying or selling a commercial property and want independent support.
- You need a report for a lawyer, accountant, estate trustee, or business partner.
- You are discussing an estate, separation, dispute, tax assessment, or litigation-related matter with the appropriate professional advisor.
- You own a commercial, industrial, multi-family, office, retail, land, or specialized property where value depends on income, leases, zoning, improvements, or property-specific risk.
- You need a retrospective value as of a past date.
- You need a report where the intended use and authorized users are clearly defined for your file.
In these situations, the private appraisal should be ordered for the actual decision you need to support.
Can You Give A Private Appraisal To A Bank?
A lender may or may not consider appraisal information provided by a borrower, so you should not assume a private appraisal will be accepted for financing.
Lenders have their own appraisal ordering processes, approved appraiser lists, underwriting policies, and report requirements. A private appraisal can help you understand value, prepare for financing conversations, or support your own decision, but it does not guarantee lender acceptance.
If financing is the intended use, tell the appraiser at the beginning. The report may need to be scoped differently depending on the lender, authorized users, and assignment requirements. Some lenders may still require an appraisal ordered through their own process.
Commercial Property Example
For commercial property, the difference can be especially important.
A lender may order an appraisal for a commercial mortgage file. That report may focus on the lender's underwriting needs.
A property owner may separately ask about a private appraisal to understand:
- Market value before refinancing or before discussing options with multiple lenders.
- Income and expense assumptions.
- Lease or rent roll implications.
- Lender instruction requirements and possible authorized-user questions.
- Highest and best use.
- Industrial, office, retail, multi-family, or land value drivers.
- Whether a tax assessment, dispute, or accounting question needs further valuation support.
One report does not automatically answer every question.
What To Tell The Appraiser When Requesting A Private Appraisal
Before requesting a quote, prepare the basics:
- Property address.
- Property type.
- Reason for the appraisal.
- Intended users of the report.
- Deadline, if any.
- Whether the value is current or retrospective.
- Lender, lawyer, accountant, or other professional involved, if relevant.
- Available documents, such as leases, rent roll, tax bill, survey, plans, income and expense statements, prior reports, repairs, or environmental information.
The clearer the instructions, the easier it is to scope the right report.
Bottom Line
A bank appraisal and a private appraisal may both involve the same property, but they are often built for different users and different decisions.
If the lender only needs its own valuation step, follow the lender's process.
If you need a value opinion for your own decision, or to discuss with a lawyer, accountant, trustee, business partner, or other professional advisor, ask about a private appraisal scoped for that intended use.
FAQs
Do I Get A Copy Of The Bank Appraisal?
Not always. Report access depends on the lender's process and the engagement terms. Ask the lender what information it can provide.
Can I Use My Private Appraisal For A Mortgage?
Do not assume that. Some lenders may review borrower-provided information, but many require an appraisal ordered through their own process.
Who Is The Client In An Appraisal Report?
The client is identified in the assignment. The report should also identify the authorized use and any authorized users.
Should I Order A Private Appraisal Before Refinancing?
It can be useful when you want independent value context before financing discussions, especially for commercial, industrial, multi-family, land, or complex properties. Ask the appraiser how the report should be scoped.
How Metrix Can Help
Metrix Realty Group provides independent appraisal and valuation support across London and Southwestern Ontario. The firm's work is scoped around the property, purpose, users, and decision the report needs to support. In Windsor-Essex, Metrix focuses on commercial, industrial, multi-family, and litigation valuation assignments.
Review Metrix's appraisal services to understand where formal valuation support may fit.
If you are not sure whether a lender appraisal is enough or whether you need a private report, contact Metrix and start with the intended use. That is the key question.