Published 7 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
With roughly 300 sales above $3 million in the entire GTA across four months of 2026, and 20 in even the busiest single neighbourhood, the standard comparable sales approach frequently runs out of data. What replaces it is a triangulation of three independent estimates.
One: what the land alone is worth, adjusted for what you are permitted to build on it. Two: the depreciated replacement cost of the building. Three: a very short list of genuinely comparable sales, including expired and terminated listings, which mark the ceiling. Where the three converge is your number. Where they diverge tells you what is unusual about the property.
The problem: not enough sales
The comparable sales approach works beautifully when there are many recent, similar transactions. Above $3 million in Toronto there frequently are not. The published counts make the scale clear: 300 GTA sales above $3 million between January and April 2026, 62 above $5 million, and in individual neighbourhoods, twenty in Rosedale, twenty in Lawrence Park, fourteen in Bridle Path–Sunnybrook–York Mills, eleven in Forest Hill South, nine in Kingsway South.
Now filter twenty sales for a similar lot, a similar era, a similar level of construction and a similar condition. Two or three survive. That is not a data set. That is an anecdote with a spreadsheet around it.
Estimate one: the land
Ask what the lot would sell for with nothing on it. Build that from bare-lot and teardown sales of similar frontage, depth and zoning in the same pocket, then adjust for the constraints that determine what a buyer could actually do:
- Zoning envelope under By-law 569-2013, including any site-specific exceptions
- Ravine protection under Chapter 658, and TRCA regulation under O. Reg. 41/24 where applicable
- Heritage status — Part IV individual designation or a Part V district plan
- Protected trees of 30 cm trunk diameter or more under Chapter 813
- Table land versus registered depth
Two lots with identical dimensions can differ by a large margin once these are applied. Land value is not a number you look up; it is a number you build.
Estimate two: depreciated replacement cost
What would it cost to build this exact house on this lot today, and how much of that value survives?
| Building | Typical treatment |
|---|---|
| Recently completed, current systems, full documentation | Most of replacement cost survives |
| 10–20 years old, well built, well maintained | Substantial value, with an allowance for updating |
| 1960s or 1970s, original systems, sound structure | Modest value; the buyer is pricing a renovation |
| Functionally obsolete plan, low ceilings, deferred maintenance | Approaching nil, or negative once demolition is priced |
The word that matters is functional. A house can be structurally sound and still worth very little to the market if its plan does not work for how buyers at that price live.
Estimate three: the true comparables, including the failures
Take the two, three or four sales that genuinely resemble the property. Then add the listings that did not sell — expired, terminated, withdrawn — because those mark the ceiling. In a thin market this is the single most under-used source of information available.
Putting the three together
When they converge, you have a defensible number and you should hold it.
When land value alone approaches the comparable-led number, the building is contributing almost nothing and you are pricing a lot. Market it as one.
When replacement cost far exceeds the comparable-led number, the owner has over-built for the street. That is real, it is common, and it does not come back at resale.
When the comparable-led number far exceeds both, something specific is driving it — a ravine, a view, an assembled parcel, a school catchment. You should be able to name it in one sentence. If you cannot, the number is probably wrong.
The practical takeaway
Do not accept a single number without seeing the three estimates behind it. Ask for the land value, ask for the replacement cost logic, and ask which comparables were used and which failed listings were considered. A valuation you can interrogate is worth ten times one you have to trust.
Frequently asked questions
Why can’t you just use comparable sales for luxury homes?
Because there usually are not enough. Rosedale, the joint busiest Toronto neighbourhood in the January to April 2026 count, recorded twenty sales above $3 million. Filter those for similar lot size, age and construction quality and you are often down to two or three, some of them a year old.
How do you value the land separately?
Look at bare-lot and teardown sales of similar frontage, depth and zoning in the same pocket, then adjust for what constrains development: the zoning envelope, ravine protection under Municipal Code Chapter 658, TRCA regulation, heritage district status, and trees of 30 cm trunk diameter or more under Chapter 813.
What is depreciated replacement cost?
What it would cost to build the existing house today, less the value lost to age, wear and functional obsolescence. A ten-year-old, well-built house with current mechanicals retains most of that cost. A 1968 house with original systems retains far less, because a buyer is pricing the renovation.
Why look at expired and terminated listings?
Because they tell you where the ceiling was. Sold data tells you what buyers accepted; failed listings tell you what they refused. In a market with very few sales, the failures carry as much information as the successes.
Do appraisers value luxury homes differently?
They use the same recognised approaches but weight them differently, leaning more on cost and land analysis where comparable sales are thin, and adjusting heavily for site and quality. What they do not do is apply a neighbourhood average per-square-foot figure to a property and call it a value.
What should I do if two valuations disagree?
Find out which of the three estimates each one leaned on and why. Disagreement between a land-led and a comparable-led valuation usually means the property is unusual in a specific way — an exceptional lot with a tired house, or an exceptional house on an ordinary lot. Naming that difference is more useful than averaging the two numbers.
Thinking about buying or selling at the top end?
Send me the address, or the shortlist you are considering. I will tell you what the property is actually worth today, what the land is worth without the house, what the transfer tax and carrying costs will be, and whether the deal makes sense. Confidential, always.
connect@jatindua.com · 437-987-1925 · Book a free consultation
Confidential. Read personally and answered within 24 hours. I never share, sell or distribute your information.
Related reading
- Why online home estimates are useless above $3 million
- Price per square foot: why it breaks down above $3 million
- Appraised value vs market value on a luxury home
- How to price a luxury home in Toronto when there are no comps
- Free AI home valuation for Toronto and the GTA
Sources
Everything above that is a rule, a rate or a published number comes from these. Verify anything that matters to your own deal.
- RE/MAX Canada — 2026 Spotlight on Luxury Real Estate, Greater Toronto
- Toronto Regional Real Estate Board — Market Watch, August 2026
- City of Toronto — Municipal Code Chapter 813, Trees
- City of Toronto — Municipal Code Chapter 658, Ravine and Natural Feature Protection
About the author — Jatin Dua, Broker of Record
I’m the Broker of Record at RE/MAX Quantum Realty, 799 The Queensway in Etobicoke, and I work with buyers, sellers and investors across Toronto and the west GTA. A large part of my work sits in the upper end of the market, where the comparables are thin, the rules are heavier and the cost of a wrong number is measured in hundreds of thousands of dollars.
The free estimators on this site are mine. I built them because the first question every owner asks is “what is it worth?” and the honest answer starts with a number you can check yourself. connect@jatindua.com or 437-987-1925.