An accurate appraisal usually costs a few hundred dollars, but it could save you a lot more in the future. With an Appraisal Waiver, there's no guarantee you're receiving an honest valuation of a premium asset. You want to know without a doubt that you're receiving a fair deal, and working with a state certified appraiser is the safest way to go. Computers and algorithms are in nearly every area of modern life, but when it comes to measuring the value of your property, nothing is more accurate than the careful assessment of a licensed professional you trust.
Appraisal Waiver - Good or Bad? What Is An Appraisal Waiver? What's The Bottom Line? Don't risk your investment with an Appraisal Waiver or PIW An accurate appraisal usually costs a few hundred dollars, but it could save you a lot more in the future. Master Appraisal Services can help. If the appraisal is less than the contract price, the loan will be smaller because the lender sets the loan amount based on the appraisal value.
If the loan is smaller, the buyer will have to find an alternative means of paying the purchase price. However, if the appraisal contingency is in the contract, the potential buyer can void the contract or renegotiate with the seller. In either case, the appraisal contingency gives the buyer options.
In some cases, however, a buyer may consider a waiver in order to enhance his offer. Consider all these factors before you send that offer. Buyer Resources. Table of Contents. When would a particular property warrant such a waiver?
Option one: Ask for a second appraisal If you can make a strong case that the property value is higher than the appraisal price, you can ask for a second appraisal. Some of these reasons could include: Inaccurate information in the initial appraisal Less-obvious home features that were missed in the first appraisal Updated or improved features Comparable recently sold homes comps in the same area that were sold at a higher price than the appraisal If the lender does not agree to arrange a second appraisal, some contingencies can include an option for the buyer to obtain another appraisal at their own expense.
Option two: Ask the seller to decrease the purchase price Asking the seller to decrease the purchase price is a reasonable request. Option three: Pay for the difference yourself 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.
So, appraisal contingency or no appraisal contingency? Metropolitan area for almost 30 years. Our staff is here to help you understand your home buying journey and empower you to choose the best path for you. Contact one of our experienced loan officers today to see if an appraisal waiver is right for you. Contact an Expert Loan Officer Which state is the property located in? Which state is the property located in? What is your loan purpose? Purchase Refinance What is your contact preference?
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