What a Letter of Opinion is
A Letter of Opinion is a REALTOR's written opinion of value, built from recent comparable sales — what similar homes near you actually sold for, adjusted for the differences. It's also called an opinion of value or a comparative market analysis. It's what you use to set a list price and build a selling strategy.
It is not a regulated appraisal, and it doesn't pretend to be. It's the market read of someone who sells in your area every week.
What an appraisal is
An appraisal is a formal valuation prepared by a designated appraiser — in Canada, typically an AACI or CRA member of the Appraisal Institute of Canada (Appraisal Institute of Canada). Lenders usually require one before they'll finance a purchase. It follows professional standards and carries a different kind of liability.
In Ontario, the term matters. A Sales Representative provides opinions of value — not appraisals (RECO). That's not a technicality; it's a licensing line, and any honest agent stays on the right side of it.
Which one you actually need
If you're pricing your home to list, or deciding whether to sell, you need a Letter of Opinion — fast, free, and strategy-focused. If your lender needs to confirm value to fund a mortgage, you (or the buyer) will need an appraisal from a designated appraiser. Many sellers start with a Letter of Opinion and never need an appraisal at all.