What is an appraisal waiver?

This week we have 2 clients that purchased homes get appraisal “waivers.”  Why would this happen? Should I waive my appraisal as the buyer?

An appraisal waiver is when the lender reviews the contract, down payment, buyers credit score, and based on the figures concludes that the homes sale price is appropriate. 

Just because a lender waives the appraisal, this does not mean the buyer cannot pay and get an outside one. In the standard RPA, it does not say that the lender must order the appraisal. 

It is important to know that it’s not the buyers choice to waive the appraisal, but the lenders, then the buyer can decide if they want to, and most lenders and agents would recommend that you take advantage of this decision. 

If you are the buyer, you should consider this as a win-win. You no longer have to worry about this contingency in your purchase, and you will save a few hundred dollars. 

An appraisal pays a huge part when purchasing a home, and we are very happy to see waivers take place in today’s fast paced market!