Appraisal alternatives offered through Better
Better is one of a select few lenders chosen to partner with Fannie Mae and Freddie Mac for their new appraisal programs. Because of this partnership, in certain cases we are able to offer appraisal alternatives that:
Speed up the appraisal process
Reduce costs for our clients
The 4 types of appraisals and alternatives*
Appraisal Waiver
No appraisal whatsoever! Value is already confirmed
Time Taken
Instant
Costs
No costs
Inspection-based Waiver
Only a property inspection is required
Time Taken
9 days faster on avg. 1
Costs
$225
(avg. $475 in borrower savings)
Hybrid Appraisal
Property is inspected, then a licensed appraiser writes report
Time Taken
4 days faster on avg. 1
Costs
Typically cheaper 1
(varies by state)
Traditional Appraisal
Appraiser inspects property and writes report
Time Taken
10-18 days on avg.
Costs
$700 avg. cost
(varies by state)
1 When compared with an average traditional appraisal
*Eligibility for each of the appraisal alternatives (appraisal waiver, inspection-based waiver, and hybrid appraisals) is determined by the investor, Fannie Mae or Freddie Mac
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Appraisal type breakdown
Inspection-based waiver
(Property Data Collection only)
- For some properties, Freddie Mac and Fannie Mae have a high degree of confidence that the property’s value supports the offer amount, so they only require a physical inspection
- No appraisal value is given, but Fannie & Freddie (the investors) accept the offer price as the value for lending purposes
- Fannie & Freddie can either decide upfront or after the property data collection that a property qualifies
- On average, these are 9 days faster and $475 cheaper than a traditional appraisal
- A Property Data Collector (PDC) trained by the Appraisal Management Company conducts the property inspection, gathering photos, measurements and a sketch of the property
Hybrid appraisal
- A Property Data Collector trained by the Appraisal Management Company conducts the property inspection, gathering photos, measurements and a sketch of the property
- Then, a locally licensed appraiser uses standard references, resources, models, adjustment methods and comparable data to produce the appraisal report
- Turn around time is 4 days faster than a traditional appraisal on avg.
FAQs
What are the benefits of having a Property Data Collector (PDC) inspect the property instead of a licensed appraiser?
Why should I trust the PDC?
What happens if the property qualifies for an inspection-based waiver, then the value comes in lower than the offer amount?
Why didn’t my client get an appraisal waiver?
What if my client qualifies for an inspection-based waiver but still wants to have an appraisal?
Are hybrid appraisals covered under our appraisal contingency?
What if the Listing Agent has questions about the appraisal alternatives?
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