As approved appraisers for most major financial institutions in Ontario, we can recognize when a sale price is too high. You may end up in a bidding war situation where each bidder has artificially inflated the sale price to well above fair market value.
This becomes an issue because the winning bidding party will not receive finance from the bank as the bank may deem the sale price too high.
Ordering an appraisal before submitting an agreement to purchase will ensure that you are not over paying for a property that could end up being your largest asset.