New Program to Help Buyers Bypass Appraisals

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

Pros:

  • 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.

Cons:

  • 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.)

appraisal photo

About Farhat and Associates Real Estate

Professional - Our early careers were in Accounting, Property Management, and Technology fields. Both Aziz and I found our passion for real estate as we started in the industry as Investors. Since 2004, we have devoted ourselves to this business on a full-time basis and have sold 100s of homes for our clients. Personal - Our passions are our family, our dogs, outdoor activities, reading, photography, golfing, and discovering new foods/restaurants.
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