Mortgage giant Freddie Mac has announced a new program allowing some home buyers to skip a traditional appraisal, which could lower the fees the buyers pay and speed up the closing process. Full Article: New Program to Help Buyers Bypass Appraisals
- Buyer saves the appraisal fee of $500.
- Buyer could close on the home sooner (about 7-10 days).
- If the appraisal is no longer an issue, the buyer and seller do not have to re-negotiate a sales price, if the appraisal comes in too low.
- This is a tough one…The appraisal is put in place to protect the lender from not lending more money than the home is worth…translation…it also keeps the buyer from over-paying for a home.
Bottom line! Get good help from a REALTOR who understands how to:
- Estimate a reasonable market value for the home before you present an offer to a Seller.
- Work with an appraiser to dispute an appraised value, if it comes in below the contract purchase price. (If you do have a loan that requires an appraisal.)