Last year, we talked about a day when Desktop Appraisals, or something similar, would become a permanent part of mortgage lending guidelines, and now it has! We discuss the upcoming timeline and what this means for your customers in our latest video!
A Zestimate is simply what it implies, an estimate of a home's value. The Zestimate is not an appraisal. It's not an estimate of value from a local real estate professional. And it can't always be trusted.
Appraisal Waivers & Automated Underwriting in 2021
In 2020, COVID-19 really threw a wrench in the traditional lending process, but our industry is resilient and adapted accordingly. We were granted appraisal waivers on 20% of our purchase transactions in 2021. That’s 20% of transactions that didn’t need an appraisal report of any kind!
The great thing about automated underwriting systems for appraisals is that the system "stores" the appraisal information and makes it more likely that a future transaction for the same property will receive an appraisal waiver. But how does it all work?