What happens when you waive the need for an appraisal?
Waiving the need for an appraisal saves around $300 to $450 in appraisal fees, says Bankrate, and you don’t have to worry about the bank pulling out of the deal if it turns out you have less equity than expected.
What does it mean when you don’t need an appraisal of your home?
If your lender says you don’t need an appraisal, it means he has either determined that the loan is low risk, or that he is willing to accept the home’s sale price as its estimated value. The Purpose of an Appraisal Lenders want to protect their investments in case borrowers end up defaulting on their on loans.
Can a seller make up the appraisal difference?
For these reasons, sellers are often willing to meet in the middle and split the difference. To save the deal from falling through if none of the other options work, the buyer can make up the difference of the appraisal amount and purchase price by paying out of pocket.
What’s the best way to appeal an appraisal?
The most powerful argument in appealing an appraisal is new, relevant comps provided by the agent. These can be used as leverage for the appraisal company to reconsider their appraisal. “The buyer’s agent can run their own comparables and submit a rebuttal to see if maybe the appraiser made a mistake,” explains Chicouris.
Can You convince an appraiser that your home is worth more?
If you feel that your home’s value has been dragged down by the sale price of nearby foreclosures and short sales, you may be able to convince the appraiser that your home is worth more if it’s in significantly better condition than those properties.
What happens if you don’t get an appraisal on your home?
Holding out for an all-cash buyer who doesn’t require an appraisal as a condition of completing the transaction is unlikely to net you a higher sales price. No one wants to overpay for a home. Unfortunately, if your surrounding area has experienced recent distressed sales, that can lower your home’s appraisal value.
The most powerful argument in appealing an appraisal is new, relevant comps provided by the agent. These can be used as leverage for the appraisal company to reconsider their appraisal. “The buyer’s agent can run their own comparables and submit a rebuttal to see if maybe the appraiser made a mistake,” explains Chicouris.
What do you need to know about a real estate appraiser?
According to the Appraisal Institute, an association of professional real estate appraisers, a qualified appraiser should be licensed or certified—as required in all 50 states—and be familiar with the local area. Per federal regulations, the appraiser must be impartial and have no direct or indirect interest in the transaction. 1
