REAL ESTATE TECHNOLOGY

Should Your Real Estate Client Sign An Appraisal Waiver?

| August 11, 2021

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Real estate professionals sometimes have to answer a buyer’s questions about appraisal waivers. What are they? What do they mean? Is it a good or bad idea for the home loan applicant to sign one? If your client is applying for a home loan, signing an appraisal waiver does not mean that the home won’t be appraised. The lender will insist on an appraisal, to ensure that they’re not lending more money than they can expect to recover if they foreclose on the mortgage. An appraisal waiver is a document loan applicants sign to tell the lender that they’re waving their right to receive the appraisal report at least three days before the loan is consummated.

In rare cases, a real estate professional might have to draft an appraisal waiver letter. In that case, the letter should include the name of the applicant, the address of the property, and, if applicable, the number of the loan application. It should state that the applicant knows about the right to receive the appraisal report at least three business days before the loan is consummated and that the applicant waives that right. At no time does the applicant waive the right to receive an appraisal report.

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OTHER ARTICLES

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How Custom Virtual Tours Can Save Your Real Estate Business in 2020

Article | April 23, 2020

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Chain Electric Company

Chain Electric is an electrical construction and maintenance company founded in 1955 with a proven history of providing excellent safety and reliable service for over fifty-five years. We specialize in overhead and underground distribution, transmission, substation and amphibious utility construction.

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