Property Inspection Waiver - forego appraisal? (Plano, Richardson: sales, credit score, loan)

[BayTexan]

Need some insight from the wise folks on this forum:

Have a contract on a property and the bank loan office just informed me that Fannie Mae can issue a PIW for this property and as such does not need an appraisal to approve the loan.

Is this a good idea (to not get an appraisal done) and go with the PIW? How reliable are the comps data that Fannie uses to grant the PIW?

Appreciate any input!

[WorldKlas]

its fine. Make sure you are not charged for an appraisal at closing.

[Residential Appraiser]

You would want to bring in an appraiser if you were worried that you may have paid over market value. Sounds like you're buying a REO. They typically sell below market value because of it's distressed conditions of sale...the seller (FNMA or bank) has atypical motivations to sell.

[BayTexan]

Thanks for the input. This is not an REO but a regular sale. Would you recommend getting an appraisal done?

[FalconheadWest]

Originally Posted by BayTexan

Would you recommend getting an appraisal done?

You didn't answer the above as to whether or not you're afraid you paid too much. What would you do if the appraisal came in low? Would you terminate? In the "hot" market right now, a seller probably would not lower the sales price to your appraised value. Getting the PIW means you save $400.

[Restrain]

Ask your agent for comps and see if the contract price is reasonable. If so, just truck on. But be sure to get a Home Inspection. Good luck.

[Ralph_Kirk]

I'm in the Plano/Richardson area and have a VA appraisal scheduled for a house. I'm in my 60s and at my age I have no intention of buying a house above the appraised value--I can't afford to be underwater.

There aren't many close-by comps--the inventory is very small--but the market is hot, so I presume the appraisal will be adjusted for the heat of the market.

[nsumner]

You are likely putting a big down payment, have high credit scores along with low DTI which is considered low risk and then Fannie Mae's automated underwriting system suggested that you don't need an appraisal.

For a large investment on a home, I think that spending $400 or so for an appraisal is well worth the peace of mind. Not only you will get the value, but the measurements of the home.

Naima