Appraisal in General
Real estate appraisal whether its for a home or commercial property or even vacant land helps tell the interested parties what the market value is approximately worth. It’s not an exact value or what you can sell a property for that is only determine on what a willing an able party is willing to pay. It helps the lenders involved a in a real estate transaction determine how much they may lend and it helps insurance companies figure out what value a property may may be worth.
Appraisal Waivers is a word you may hear these days but is it something you should be interested in as a new home buyer? Well, that all depends. I’m not sure if Appraisal Waivers will become mainstream because as long as I have been around the Real Estate business you always needed an Appraisal. The banks want them and all the other lenders.
So why would any bank or lender "Waiver the Appraisal"
Right now the Real Estate market in Arizona especially is very hot. Properties are selling fast and there is a shortage of listings. Yes it’s Covid 19 and surprisingly a lot of us even the ones that have been in the Real Estate market for years. Most thought with Covid 19 happening this past Spring that home prices and sales would slow down and they did but only for a short period. Covid 19 is one small reason that Appraisal Waivers even came up and it’s because nobody wants any strangers going through their house as much as possible.
Don't plan on a Appraisal Waiver for you next home purchase
My conclusion with this new talk of the town that comes along every so many years like so many other things in Real Estate is getting one won’t be easy. So plan on paying around $450 to have one done and you can usually have them included in your mortgage. Again I’m not an expert so please have a license appraiser explain this to you and a mortgage expert. I’m just hearing about them more lately and I thought I would bring up the subject and if you can get a Appraisal Waiver on your next home purchase and save $400 plus then why not. Thank you and please come back and read more of my blogs. Stay safe everyone.
The other reason for Appraisal Waiver becoming a topic
When a real estate market is hot that means things are selling and appraisal is only as good as the day it’s done on so to speak. It has a longer shelf life for the lending institutes like 120 after it’s done for some but the reality in a hot market is you do an appraisal today and the market has gone up tomorrow. I’m not a lawyer or accountant so please don’t take my word for it it’s just my opinion like so many others. Appraisals cost money and if the market is going to change that quick you can save several hundred even more if a lender will let you Waive the Appraisal.