# How do appraisals work for rural acreages?

> Appraisers must find 'Comparable Sales' within a reasonable distance that have similar acreage.

Category: Financing
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/financing/how-do-appraisals-work-for-rural-acreages

## Answer
Appraisers must find 'Comparable Sales' within a reasonable distance that have similar acreage. In rural areas, this search can span 20-50 km. If there are no recent sales of similar sized lots, the lender may 'haircut' the value of any outbuildings or excess land to reduce their risk exposure.

## Related guide
- https://ratellow.com/guides/rural-agricultural-mortgage

## Sources
- CMHC Rural Underwriting — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf
- B-20 Property Valuation — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.4.2