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When are appraisal waivers approved?  You have to check with individual lenders for their criteria but generally, purchases with more than 10% down. Additionally the lender needs enough information about the subject property (think photos, floor plans, accurate sf sketches). Lenders are also influenced by a recent Acceptable Opinion of Value. An appraisal waiver can cut loan approval times by as much as 50%.

If an appraisal waiver is not granted there are still two other options that can reduce loan approval times by weeks. Desktop appraisals don't require an inspection by an appraiser but they do require recent photos and a floor plan. Hybrid appraisals require an inspection, measurements and photos by a qualified individual, but not necessarily by the appraiser producing the report.

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The bottom line is that you can greatly increase the odds of the buyer receiving an appraisal waiver, a desktop appraisal or a hybrid appraisal approval and we are here to help.

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How Appraisal Waivers Speed Up the Closing Process:

1. Reduced Delays: Traditional appraisals can sometimes take weeks to complete, causing unnecessary delays in the closing timeline. With an appraisal waiver, the entire appraisal process is eliminated, expediting the path to closing.

2. Faster Mortgage Approval: Appraisal waivers can lead to quicker mortgage approvals. Since the appraisal is one of the final steps in the underwriting process, bypassing it allows lenders to finalize approvals more rapidly.

3. Smoother Negotiations: Appraisal waivers can provide buyers with more confidence in their offers. Sellers may view offers with appraisal waivers as more reliable, leading to smoother negotiations and higher chances of acceptance.

4. Competitive Advantage: In a competitive market, having an appraisal waiver can set your buyer's offer apart from the rest. Sellers often prefer buyers with waived appraisals because it reduces the risk of the deal falling through due to appraisal issues.

When Are Appraisal Waivers Available? Appraisal waivers are typically granted by lenders when specific conditions are met. These conditions may include:

• The buyer's creditworthiness and financial strength.

• The loan-to-value (LTV) ratio falls within a certain range.

• The property's value is supported by sufficient data from previous sales and market trends.

It's important to note that not all transactions will qualify for an appraisal waiver, and it ultimately depends on the lender's policies and the specific circumstances of the transaction.

Guiding Your Clients Through the Process: As a realtor, it's essential to educate your clients about the benefits and limitations of appraisal waivers. Advise them on when and how to request an appraisal waiver, and help them understand how it can improve their chances of securing their dream home quickly.

In today's competitive real estate landscape, time is a valuable commodity. Appraisal waivers offer a game-changing opportunity to close deals faster, providing realtors and their clients with a significant advantage. By embracing this innovative approach to the closing process, you can ensure smoother transactions, delighted clients, and an edge over the competition.