Waivers 50%. Hybrids 30%.

[OSU Beavers]

At lease once a month I have an appointment set for a full interior 1004 purchase appraisal when I get the email "Please cancel" and find out that the borrower decided to waive the appraisal to accept the inflated purchase price. The last one stated in the private notes for an old Bungalow listing that the boiler is on the fritz and the only source of permanent heat was the gas fireplace on the main level. I am sure that the Realtors disclosed that to the buyer.

 

[Overimprovement]

I was just asked to appraise this. I guess it did not qualify for a waiver. Lol

4721 Morehead Rd APT 409, Concord, NC 28027 | Zillow

4721 Morehead Rd Apt 409, Concord NC, is a Condo home that contains 1129 sq ft and was built in 1984.It contains 2 bedrooms and 2 bathrooms.This home last sold for $500,000 in November 2025. The Zestimate for this Condo is $500,100, which has increased by $500,100 in the last 30 days.The Rent...

www.zillow.com

This is the crap that I get. Either waivers and hybrids are getting the easy ones or the staff appraisers are getting them.

It ant me.

Only 391 days on zillow. No market issues there. Oh and don't forget the personal property of 5 race tickets with option for more. Let me guess, no sold comps in there for the last 24 months.

 

[shrubberyvaluation]

Only 391 days on zillow. No market issues there. Oh and don't forget the personal property of 5 race tickets with option for more. Let me guess, no sold comps in there for the last 24 months.

Not sure why you would need race tickets, unless you are reselling them.

 

[Fernando]

Heck yes! I'll just sign "Fernando".

It must have been you.
Back in the 1990s, a mortgage broker mentioned about this appraisal report with my name on it. I don't recall doing it.

 

[Mike Ault]

It must have been you.
Back in the 1990s, a mortgage broker mentioned about this appraisal report with my name on it. I don't recall doing it.

Memory loss, huh? Somebody must've slipped you "a Mickey" at Disneyland back then.

 

[Fernando]

Memory loss, huh? Somebody must've slipped you "a Mickey" at Disneyland back then.

I only have memory loss in past several years.
If I go full retirement, my brain will end up small and senseless like Charles. I dread that.

 

[PhillyNJ]

Our AVM value determines the decision, not the value entered by the lender. While a lender can input any value, if it falls outside a defined tolerance range from our model value, the offer will not be made. This applies only after all other loan parameters have been satisfied.

And that's the problem with all this. There's the data world and the real world. Everything is currently falling into the data world.

Appraisals used to be the barrier for all things to keep the real estate market in check. When lenders worked a loan, the one thing in the back of their mind was always, 'it has to appraise'. When realtors listed a home, the one thing in the back of their mind was always, 'it has to appraise'. When realtors made offers on homes, the one thing in the back of their mind was always, 'it has to appraise'.

Not anymore.

I'll give you a real life example that is happening over and over again where I'm at.

A house was listed near market value. First bid was $50,000 over list, which is about 10% higher than market value. But, they put down a very large downpayment. So, data wise, it met requirements, it was a safe loan. Low LTV, good credit, low risk. Making money for Fannie and the lenders. Closed within 3 weeks, no appraisal.

Problem is, this artificially inflates home prices. An appraiser would never allow that to be valued $50,000 over the list, because there was nothing that proved it. Now it becomes a market value transaction that all computers will take into consideration.

It's happening over and over. One development is going crazy like this right now. It's been about 5 sales in a row. Over list offer, large downpayment, no appraisal. Values get increased. Rinse and repeat. Next sale gets listed higher, same thing. Next sale gets listed higher, same thing. Appraiser's would get in trouble for allowing some of these home prices. But, it's ok for Fannie and these models because it's a safe loan.

It's not good.

 

[DWiley]

And that's the problem with all this. There's the data world and the real world. Everything is currently falling into the data world.

Appraisals used to be the barrier for all things to keep the real estate market in check. When lenders worked a loan, the one thing in the back of their mind was always, 'it has to appraise'. When realtors listed a home, the one thing in the back of their mind was always, 'it has to appraise'. When realtors made offers on homes, the one thing in the back of their mind was always, 'it has to appraise'.

Not anymore.

I'll give you a real life example that is happening over and over again where I'm at.

A house was listed near market value. First bid was $50,000 over list, which is about 10% higher than market value. But, they put down a very large downpayment. So, data wise, it met requirements, it was a safe loan. Low LTV, good credit, low risk. Making money for Fannie and the lenders. Closed within 3 weeks, no appraisal.

Problem is, this artificially inflates home prices. An appraiser would never allow that to be valued $50,000 over the list, because there was nothing that proved it. Now it becomes a market value transaction that all computers will take into consideration.

It's happening over and over. One development is going crazy like this right now. It's been about 5 sales in a row. Over list offer, large downpayment, no appraisal. Values get increased. Rinse and repeat. Next sale gets listed higher, same thing. Next sale gets listed higher, same thing. Appraiser's would get in trouble for allowing some of these home prices. But, it's ok for Fannie and these models because it's a safe loan.

It's not good.

Appraisals won't and don't stop what you describe. I have seen that first hand in my own culdesac. Just in the last two years two people have knowingly paid well over list price and well over the what the appraisers said the homes were worth. Both had appraisals. The buyers wanted the homes, did not care what the appraisers said, and had enough money to cover the difference. So, the sales went down and were recorded at what you would likely call inflated prices. The appraisers did not "get in trouble" for "allowing" those sales to close at that price, because it was up to the buyers, not the appraisers.

EDITED TO ADD: In both of the cases above an appraisal was done. BUT, if you talked to the agents they will say they had an "appraisal waiver" - what they mean by that is that the buyer waived the contract clause that said it had to appraise for at least the contract price.

 

[Zoe]

Appraisals won't and don't stop what you describe. I have seen that first hand in my own culdesac. Just in the last two years two people have knowingly paid well over list price and well over the what the appraisers said the homes were worth. Both had appraisals. The buyers wanted the homes, did not care what the appraisers said, and had enough money to cover the difference. So, the sales went down and were recorded at what you would likely call inflated prices. The appraisers did not "get in trouble" for "allowing" those sales to close at that price, because it was up to the buyers, not the appraisers.

EDITED TO ADD: In both of the cases above an appraisal was done. BUT, if you talked to the agents they will say they had an "appraisal waiver" - what they mean by that is that the buyer waived the contract clause that said it had to appraise for at least the contract price.

That is like somebody wanting a house right next to their grandmother to take care of them. They are willing to pay over market value for the home.

 

[Carnivore]

Seems to me the best thing a res appraiser can do is develop more income streams. I have measured houses for real state brokers , Why, because they wear real nice cloths. otoh hand I dress to measure . was it a lot pf money? Sometimes and other times no, I also have referred someone I know to a realtor. Did the realtor pay me. if it sold yes they did. In north Carolina we have a Home Inspector License. I started to get that because it would be another income stream. I decided not to, but now the Gen-Z are indeed getting home inspections on a house they want to buy. They are paying for that out of their own pockets. I gave evert one I met my business card. but I am sure they are cheap. Did it payoff well it is hard to say . I think it did in the long run. So my real estate brokers license paid for itself.

So this is all about the money.