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!

Gratitude and Triumph: Celebrating Two Consecutive Gold Badge Wins in the Best of Westmoreland Contest!

At Town & Country Residential Appraisals, we are overflowing with appreciation as we extend our sincerest thanks to those who have supported us throughout our journey. It is with immense pride and joy that we accept the honor of being awarded the Gold Badge for the second time in a row in the highly regarded Best of Westmoreland contest.

Our success wouldn't have been possible without the support of our nominators and voters, the trust given to us by our valued clients, and the faith placed in our services by the community we serve. Your confidence in our expertise drives us to continuously raise the bar in providing exceptional residential appraisal solutions.

While this is only the 2nd year for the contest, it grew exponentially for 2023 and we faced formidable competition from six other distinguished appraisal offices. However, we secured our position as the reigning champions for both years.

Such a momentous achievement is truly a cause for celebration, and we couldn't be prouder to share this milestone with you all. It is a testament to our unwavering commitment to delivering accurate and reliable appraisals and a reminder of the exceptional team behind Town & Country Residential Appraisals.

Thank you for joining us on this incredible journey. Your continuous support and trust inspire us to reach even greater heights, and we look forward to serving you with the same passion and dedication for years to come.

We can’t say thank you enough.

Our goal is to continue providing the best in real estate appraisal services

throughout the entire County of Westmoreland.

Our services include appraisals for divorces, expert witness testimony, bankruptcy, estates, pre-listing, consulting for subdividing large parcels, pre-construction, renovations and lender work.

Choose the two-time Gold Badge Winner in the Best of Westmoreland contest for your residential appraisal needs, and discover the difference that sets us apart, where excellence meets recognition, results exceed expectations and as we say here “Where Values Matter!”

Appraisal Racial Bias (part 3)

I’ve been discussing the topic of real estate appraisals and the allegations of racial bias that has the possibility of creating issues for some homeowners or potential homeowners. There have been a few cases that have had the spotlight shown on them and the scenarios are all relatively similar.

It starts with an appraisal that is completed on a home where the occupant is of a minority race- whether the appraiser meets the occupant in person or there are pictures and other personal contents that elude to the persons race within the home. When the appraisal is completed it is perceived to be “low”. A subsequent appraisal is completed in which the home has now been “whitewashed”. If you haven’t heard of the term, it refers to the process of removing all indications of minority race within the home and even having a white person stand in as the fake homeowner. Some of the current cases out there are real life examples and others are experiments in which the entities conducting these are doing it for the sole purpose of trying to prove that the appraisal process is inevitably biased.

In either case, these are serious allegations.

I’d like to ask a few provoking questions that don’t have easy answers.

Does a value that comes in lower than what someone was expecting or desiring automatically mean the value is wrong?

When a homeowner or occupant is of a minority race, if the appraisal value is lower than what someone feels it should be, does that mean racial bias came into play?

Is it possible that the lower value was accurate and that the higher value was a case of reverse bias?

There is one case in particular that took place for a black couple out of northern California where the homeowners make this statement to CNN- “What that appraisal did is what we were actually asking the appraisers to do, to not consider race, to not consider neighborhoods and or the lines that have been drawn and perpetuated by redlining.” Based on this statement, if an appraiser stays within the neighborhood and the neighborhood happens to be primarily occupied by a minority group, does this indicate racial bias was a factor in completing the appraisal?

In the future, I’d like to discuss more the idea of neighborhoods and market areas. For now, I hope these questions have been thought provoking and at least given some pause to consider different angles.