Yeah, let’s talk about him, OK? All right, let’s discuss it from a high level. OK.
All right, so anyways, appraisal waiver is what they are here is if you live in a homogeneous neighborhood where there all more or less the same, then you will have the opportunity to get one from your lender directly instead of having an appraisal actually conducted on your property.
Right. There’s actually two types of appraisal waivers that we’ll talk about that one is the first one that you can get where you don’t you know, when you’re going in in a in a multi multiple offer situation, this would be a great way to separate you from the others if you’re having to get a financing. Right. There’s a lot of people that are paying cash right now and it’s hard to compete against.
But if you’re able to go in and say, hey, here’s my offer, yes, I’m getting finance, but it’s not subject to an appraisal that looks great. And that’s a very strong offer. And you could talk to we know that Brandon has done this many times for our clients, and it’s been amazing. We’ve won many offers because of it, because it eliminates that obstacle that always hangs over people’s heads. And they worry about it because the prices keep going up. Appraisals are based on what’s happened in the past, not really what’s happening in the current market.
So, you know, it’s really, really important, very good.
And a couple of things that go into it.
Why the lender would tend to grant one is when they have properties that are all of the same price in the same area, they have a lot of sales and they have a lot of data to show that the home is likely to be worth like. Right also when the home is at a typical price. So it’s not a huge outlier, like if all the homes in that neighborhood or that area are kind of like the same, that helps out a lot instead of it being on one extreme or the other necessarily price wise. Right. So that helps them out a lot to be able to do that. And if it’s the same size, same amount of beds, batts is like kind of typical. Right.
So I don’t want to say a Cracker Jack Box, but if it’s consistent with that area, I have seen one that was kind of, you know, on the on the high side for what was, you know, what was around it, surrounding it.
And we were able to get an appraisal waiver on it, which was huge in this goes on often at the time when they’re putting in all the information to have the file underwritten, that it would come up and be an option for you if your lender is on your side doing this. And it would probably also require you to put a an amount of money down. It’s probably often not going to happen like a zero down program. It’s going to be a little bit more down to kind of protect the lender and give them some room there. Right. But it does really help for sure.
And it’s lender specific. So it’s not just, you know, you’re going to have to reach out to your lender. And I suggest that you reach out ahead of time before you submit your offer. Let them know the you know, give them the property information and you know the price and see if you can get that to submit with your offer.
All right. Really good. And then you’ll be good to get a win. So look at that. So let’s analyze it now from the other side of here, the seller, OK, right. So if you’re the seller in your represent, if we’re representing the seller, then what we want to see is some more information about that.
But when it comes in, it should be better because now we don’t have to worry about the property upraising, so to speak, as specifically if a person is going above the price or you’re not 100 percent confident right now because sometimes you do have properties that don’t appraise, so to speak. Yeah, we’re seeing that more and more right now. All right. Very good. So check in now, if that’s going to show you save you a ton of time with any of your properties, maybe help your buyer get a property, maybe help your seller realize the full well.
Another thing is I would I would strongly suggest that when you have a client in a new construction, because we see that a lot. So when you when you sign a new construction contract, you pretty much sign that, you know, you you’re waiving the appraisal and whatever it comes in at, you’re obligated to do that. So, you know, sometimes the builders are pushing us to their own lender.
So you can also get a second opinion from your lender and see if you can possibly have that appraisal waiver and how that works. And, you know, that would be a good thing to have in your back pocket. Oh, yeah, for sure. Because then if the problem does come up, then at least you have that. It’s always good to be diligent and to have options and to think through it, but to plan in the event that there’s an issue. Sure. Yeah. Very good. Yeah. I like that.