When you make an offer on a home, the Better Appraisal Guarantee enables qualified borrowers to waive the appraisal contingency.** If you’re buying in a competitive housing market, waiving the appraisal contingency can boost your odds of an accepted offer by more than 50%.*
Typically, when the appraised value of a home comes in lower than the offer price you’ve made on it, most lenders will reduce the amount you can borrow or offer new loan terms that may come with a higher interest rate or require mortgage insurance.. If you don't want to accept the lender's new loan terms, traditionally, you have two options. You could try to renegotiate the sale price with the seller or you could increase your down payment to cover the difference between the offer price and the appraised value of the home. Including an appraisal contingency with your offer gives homebuyers the option to walk away from a home purchase if the appraised value is lower than the offer price. However, in a competitive market where homebuyers are bidding well over the asking price, sellers are less likely to accept offers with appraisal contingencies because there is less certainty that the sale will go through.
The Better Appraisal Guarantee means that qualifying homebuyers who’ve locked their interest rate with Better Mortgage and work with an agent from Better Real Estatecan rest assured knowing that no matter what the appraised value of the home is, the terms offered in their most recent loan estimate will remain the same.**
*Results based on a survey of 104 real estate agents in competitive markets. Of those surveyed, more than ~60% responded that waiving the appraisal contingency could increase the likelihood of having a competitive offer accepted by 50% or more. Results may vary and are not intended to represent or guarantee that anyone will achieve the same or similar results. **See the full Better Appraisal Guarantee terms and conditions.