Buyer's Appraisals and How They Benefit a Realtor, a Buyer and a Transaction

We all know that the purchase of a home is the largest and most important purchase someone can make in a lifetime. It's also one of the most stressful times, especially for a buyer.

But wait!! We got an Appraisal waiver, or as they are called by FNMA now, "Value Acceptance". Isn't that great?

...or is it?

Another thing we all know is that an appraisal completed by an experienced Appraiser provides very valuable information to the parties in the transaction. More than just a value of the home.

An appraisal waiver, or "Value Acceptance" in a transaction is for the benefit of the lender and FNMA/FHLMC. Not the Buyer.

Doesn't it make sense that, for this largest and most important purchase they may ever make, that the Buyer would want all the info they can get to inform and protect themselves?

San Juan County Appraisal offers what we call, a "Buyer's Appraisal".

A Buyer's Appraisal is different from a lending appraisal. Just like the name says, it's for the benefit and use of the Buyer, not the Lender.

Here are some of the advantages of a Buyer getting a Buyer's Appraisal. 

The Buyer's Appraisal comes with a Question and Answer session between the Appraiser and the Buyer! The Buyer can ask the Appraiser any questions they want to!

The Buyer is in control. The appraisal is the property of the Buyer, and it's for their benefit. They can use it how they want. They can use it, not only to be more informed, but it will give they all kinds of info such as:

• Zoning, what it means and what it allows the buyer to do with the property
• Flood Zone: Is the property in, close to or adjacent to a flood zone?
• Market Trends: Which way is the market going? Up? Down? Sideways?
• Are there any adverse external influences?
• What is the actual square footage of the house?
• Are the bedrooms truly bedrooms?
• Does the house have any additions?
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• Independent Validation of Value

• The Buyer's Appraisal provides assurance that the price paid aligns with the market value, reducing the risk of overpaying. This is essential for cash buyers or buyers with an appraisal waiver, because there is no lender-mandated appraisal as a safeguard. The lender wants to make the loan. That's how they make a profit. It's not their risk if the buyer is over paying for a home or if there is some aspect of the property that makes the transaction riskier for the buyer.

Risk Mitigation

• Identifies potential issues, such as unusual market trends, declining property values in neighborhoods, flood zones, zoning issues, health and safety hazards or atypical property characteristics that could affect future resale value.

Negotiation Tool

• If the appraisal identifies a lower value than the agreed price, or a negative factor about the property, the buyer can use this to negotiate a price reduction or other concessions.

Reduces The Risk of Buyer Remorse

• A buyer confident in the property’s value is less likely to back out of the deal or cause delays in closing. A confident and happy buyer is much more willing to refer business back to their Realtor.
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• Facilitates a Smoother Transaction

• If questions about the value arise later, having an independent appraisal can prevent disputes and disruptions. At SJC Appraisal, when a buyer gets a Buyer's Appraisal, it comes with a consultation about the property and market data. YES! The buyer can talk directly with the Appraiser and ask them any question they want!

Builds Trust between the Realtor and the Buyer

• A Realtor that refers their Buyer to get a Buyer's Appraisal shows the Realtor is advocating for the Buyer’s best interests by recommending an independent, professional valuation.

But what if the Appraiser finds out and reports something negative about the deal?

If it is discovered that there is something large enough to ruin the deal, the Buyer's Agent and the Buyer probably want to know about it before it closes. The Buyer's Agent can be a rockstar if I find something that the buyer can renegotiate the sales price with.

Buyer's Appraisals come in 2 flavors.

Desktop Appraisal

No inspection of the property. I base my info on what is in the listing and Assessor records. At least 3 sales and 2 listings or pendings are included. This is a time and cost effective solution for a Buyer that wants an independent and objective value opinion on the home they are buying. 48-72 hours completion time.

Full Appraisal

The property is given a normal interior appraisal inspection. At least 3 sales and 2 listings or pendings are included. This is a more in depth analysis for the Buyer that requires not only an independent and objective value opinion on the home they are buying, but a deeper report on the property.

Click this link to inquire!

Anthony Blackburn is a Washington State Certified Appraiser with over 30 years experience. Anthony does residential appraisals in San Juan, Island, Skagit, Snohomish and Whatcom Counties.