What is an Appraisal Waiver?

In a Seller’s Market, like we have in DFW today, buyers often need to use all of the tools in their disposal to make an offer as competitive as possible.

One of those tools that potential buyers have is an appraisal waiver. In order to understand the appraisal waiver, you first want to know what an appraisal is and why you get one.

If you are using a mortgage to buy a home, your lender will most likely require an appraisal. They use that appraisal to determine how much money they are willing to loan you to buy the home. In other words, the mortgage amount is determined by the appraisal amount.

In order to guarantee to sellers that they will receive the full offer amount, you can attach a full or partial appraisal waiver to your offer. It adds a little risk for buyers, but gives sellers extra security. Watch the video above for a detailed breakdown of how appraisal waivers work, and why you might decided to use a partial or full appraisal wavier in your offer.

For more personal advice about your situation, reach out to a member of our team today. We’d love to connect with you and best advise you on how to make a strong offer that you are financially prepared for and comfortable with.