Not in my market. I came in under contract more often than not and the loans still closed. Waivers aren't given at random. They're given to lower risk borrowers that are well aware they're overpaying.
Same applies to buyers waiving appraisal contingencies. One buyer that wants a property at any cost and has the money to throw at it will skew the comps higher with or without an appraisal.
We won't know how good or bad waivers are until we see the default rates associated with them
Sling lets you do that. Can you see it? You can track and research the data cancer if you want to simply by looking at larger markets with high volumes of uniform housing. Three level 55+ retirement community condo's are perhaps the easiest way to show the uninitiated what self re enforcing feedback loops via automatic avm and value waiver pass throughs really mean. Can you see it?
In highly uniform markets that are large enough that almost every appraiser or realty agent only bothers to look in the same complex, because there is an excess of data, the feedback loop has long since already resulted in unsustainably high values. This particular market of around 300 condo buildings and around 3,000 individual units, has lost $150k per unit minimum, some even more, scales with size and general price. Windsor Gardens, Denver, CO. Evaporated within a brief year or two. It's an area wide trend but looking into large markets the data cancer is right there like a big red stamp.
90 day picture in a market crashing for years. This is actually the slow recovery as expected dom is now down from 24m to around 6m, and expired listing proportional volume is way way down. Sales volume is moving up. While price and value continues to slide.
Note the 'successful sales' that still pass so high.
Thirteen sales in 90 days, four of them were most likely people with good credit, maybe more. Value acceptance nullifies the principal of substitution and wipes away blacks law definition of fair market value. These concepts no longer apply.
All anyone needs to do in order to provide serious research on the matter is pull up those sales records, call the buyers agent, and verify their borrowers used appraisal waivers.
This will in the not too distant future, provide excellent leads for litigation against buyers agents and their insurers, whom failed to secure far better deals for their buyers than they could have, and rather walked them into immediately upside down loans in order to get a slightly larger commission.
I absolutely guarantee that if the value waiver program remains in place, this market will go sky high again as well. This is how wealth is extracted from realty markets.
One of the reasons we can see the data cancer so clearly here is the hoa's strict maximum 20% rental and off site owner limitation. Otherwise the big players would have picked almost all of this up from the FNMA Whole Loan program and had first purchase opportunity to hold these as rentals, and defaulted or walk away units would not have been seen on MLS in the first place. That's how they do it. This is how a fifth of housing has moved into corporate hands.
