That $300 appraisal waiver saved me a ton of headache

I closed on a small retail strip in Ohio last month and skipped the full appraisal by paying for a waiver through a local credit union. Cost me $300 upfront instead of the usual $600 fee, and it cut two weeks off the underwriting timeline. The catch was I had to put 25% down instead of 20%, but the time savings made it worth it for me. Has anyone else used appraisal waivers on smaller deals, or do you think they're too risky in a shaky market?

2 comments

2 Comments

jason9588d ago

Man you're playing with fire on this one. Skipping the full appraisal in this market is like buying a used car without popping the hood. The whole point of that appraisal is to catch hidden problems before you're stuck with them. With rates jumping and commercial real estate getting shaky in a lot of places, that $300 savings could cost you way more if the property's actually worth less than what you're borrowing against. Credit unions are known for being a little looser with stuff like this, but that doesn't mean it's smart. Plus you had to eat an extra 5% down payment just to save $300 and two weeks. That's locking up way more cash you could have used elsewhere. And what happens when you go to sell or refinance down the road and the next lender says sorry we need a real appraisal and it comes back low. You painted yourself into a corner for basically nothing. The time savings sounds nice but rushing a deal usually comes back to bite you in the ass.

the_kai8d ago

Come on, is it really that serious? You're acting like he took out a shady loan from a guy in a van. The credit union did their homework, they just used a different method to check the value. And the extra 5% down, that's not some huge loss. It's just more equity right off the bat. If the market tanks that bad, having a regular appraisal wouldn't have saved him anyway. The refinance worry is fair, but by the time he sells, the market will be different. People act like one skipped appraisal is gonna ruin your whole life. It's a gamble, sure, but not some crazy reckless move like you're making it out to be.