Complete Appraisal Blog

An appraisal provides an objective assessment of a property’s market value. For buyers, this ensures they are not overpaying on the property. For sellers, it helps establish the fair market value of their home and gives the opportunity for effective negotiations.

Appraisal waivers are often used to make a competitive offer when trying to purchase a home, especially during times when the competition for homes is fierce due to low inventory and high demand. But before a prospective home buyer decides to waive their right to a home appraisal (and even before a seller decides to list a property!) there are some things to consider:

• Without an appraisal, buyers risk paying more than fair market value. This can come back to bite you further down the road if you decide to refinance and learn you have less equity than expected, or can create difficulty selling for a profit.
• If the appraisal comes in lower than the contract price, buyers with an appraisal contingency have the ability to re-negotiate or walk away from the sale.
• Obtaining an appraisal prior to listing a home on the market allows sellers to set a competitive asking price for their home, which increases the chances of attracting buyers and creates opportunity for stronger negotiating power.