Appraisal Waivers Aren’t the Win Buyers Think They Are

Would you let your buyers purchase a home without a home inspection? Probably not! Home inspections and appraisals are critical steps in the home-buying process, and most purchase agreements reflect that by making them standard contingencies. These safeguards protect buyers from costly mistakes and ensure their investment is sound.

While appraisal waivers may seem like a win for buyers eager to move quickly, it’s important to understand what they truly mean. An appraisal waiver doesn’t confirm the property’s market value—it’s simply the lender’s way of accepting the risk associated with the loan. But that’s the key: it’s the lender assuming the risk, not the buyer.

As a buyer’s agent, it’s your responsibility to help clients make informed decisions. Just as you wouldn’t advise skipping a home inspection, you should explain the potential downsides of relying solely on an appraisal waiver. Without an independent appraisal, your clients risk overpaying for a property or encountering valuation issues in the future.

Why Both Steps Matter:

• Home Inspection: Identifies potential structural or safety issues, ensuring the home is safe and sound for your buyers. If your buyer chooses to buy a property with known defects, then your buyer is at least making an informed decision to take on the added repairs and risk.

• Appraisal: Confirms the property’s market value, ensuring your buyers aren’t overpaying for their largest financial investment. If they choose to overpay because of unique circumstances, then your buyer at least is making an informed decision.

An appraisal waiver may speed things up for the lender, but it doesn’t protect your clients. Encourage your buyers to safeguard their investment by hiring a qualified, independent appraiser. Taking this step will give them confidence in their purchase and protect them from unnecessary financial risks.

Bottom Line:

Don’t let your buyers assume the lender’s risk. An appraisal waiver is convenient for the lender, but it’s no substitute for confirming market value through a professional appraisal. Protect your clients—advocate for the critical safeguards they need!

Ready to connect your buyers with a trusted appraiser? Reach out to schedule an independent appraisal today!

Icicles: A Winter Warning You Shouldn’t Ignore—Even as Spring Approaches

As winter fades and the days grow longer, many homeowners are eager to welcome the warmth of spring. The snow-covered rooftops and glistening icicles that once defined the season are slowly melting away. While the sight of icicles may have been charming in the heart of winter, they often signal an issue that shouldn't be ignored—even as the season changes.

WHY DO ICICLES FORM? Icicles form when snow on your roof melts and refreezes as it flows to the cooler edges of your roofline. While this may seem natural, the underlying cause is often insufficient insulation or poor ventilation in your attic. Heat from your home escapes through the roof, warming the snow and causing it to melt. When the melted water reaches the eaves, where temperatures are colder, it refreezes into icicles.

WHAT ARE THE HIDDEN DANGERS? Beyond being a potential hazard if they fall, icicles are a telltale sign of ice dams. Ice dams occur when melted snow refreezes and creates a blockage, preventing water from properly draining off your roof. This trapped water can seep under shingles and into your home, causing: WATER DAMAGE TO CEILINGS AND WALLS; MOLD AND MILDEW GROWTH and STRUCTURAL ISSUES. These problems not only compromise your home’s integrity but can also lead to costly repairs.

HOW CAN I PREVENT ICICLES AND ICE DAMS? Even though winter is coming to an end, taking action now can help prevent issues next season. Here’s how:

1. Inspect Your Insulation: Ensure your attic is well-insulated to prevent heat from escaping through the roof. Adding insulation where needed can significantly reduce heat loss.

2. Seal Air Leaks: Look for gaps around vents, chimneys, and other openings that allow warm air to escape into the attic. Use caulk or weatherstripping to seal these leaks.

3. Improve Ventilation: Proper attic ventilation helps maintain a consistent temperature, preventing warm air from accumulating and melting the snow on your roof.

4. Clear Your Gutters: Clean gutters and downspouts allow melted snow to drain properly, reducing the risk of ice dams.

5. Plan for Next Winter: Now is the perfect time to evaluate your home’s insulation and roofing before the next snowfall. Addressing these issues during warmer months can prevent future problems.

DO I NEED TO CALL A PROFESSIONAL? If icicles and ice dams have already caused damage, it may be time to consult a professional. A roofing contractor or insulation specialist can assess your home’s needs and provide targeted solutions. Additionally, if water damage has already occurred, a professional can help mitigate and repair the damage before it worsens.

Winter may be ending, but that doesn’t mean you should ignore the warning signs left behind. By addressing insulation and ventilation issues now, you can enjoy a cozy, energy-efficient home next winter while avoiding costly damage. So, as the last icicles drip away, take the opportunity to prepare your home for the seasons ahead.

Low Appraisal? No Problem! ROVs to the Rescue

Buying a home is stressful enough without an appraisal throwing a wrench in the works. But here’s the good news: if your appraisal comes back lower than expected, there’s a way to challenge it. It’s called a Reconsideration of Value (ROV), and it’s a tool that can save the deal, reduce buyer stress, and make real estate agents look like heroes.

Click on the image to go straight to the source from the CFPB

What’s an ROV, Anyway?

An ROV is simply a request to re-examine an appraisal when you think it missed the mark. Say you’re all set to buy your dream home, but then the appraisal says it’s worth less than what you offered. Ouch. That could mean paying more upfront or, worse, the deal falling apart. But don’t sweat it just yet—the ROV gives your lender a chance to say, “Hey, appraiser, maybe take another look?”

The new federal guidance on ROVs has already been issued, so the process is live now! Financial institutions are now implementing these policies to make sure homebuyers and their agents can request reconsiderations when appraisals seem off. So, if you’re currently in the homebuying process—or will be soon—you have this valuable option at your disposal.

How Does the ROV Process Work?

It’s pretty simple:

1. Submit the request: The buyer (through their lender) requests the appraiser to reconsider their valuation. This happens when there’s new or overlooked information—like alternate sales that were not included in the report or errors/omissions in the original report—that could change the value.

2. The appraiser reviews it: The original appraiser takes a second look at the new info. They’ll either update the valuation or explain why they’re sticking with the original one.

3. Outcome: With any luck, the new information helps adjust the valuation. But even if it doesn’t, you’ll know that the appraisal got a thorough second look.

For agents, you’re key to making this happen. You’ll help the buyer gather the right data and submit it, and guide them through the process. Think of it as adding “deal-saving superhero” to your list of skills.

An ROV is a game-changer. For buyers, it’s peace of mind—knowing they don’t have to accept a lowball appraisal. For agents, it’s an essential tool to keep deals moving smoothly.

So, when that appraisal doesn’t seem quite right, don’t panic—consider an ROV. This process is live and ready to use today, so buyers and agents can feel empowered to challenge valuations and keep those deals rolling.

In today’s real estate market, knowing when and how to use an ROV could be the key to closing more deals. Keep it in your toolkit—you never know when you might need it!