Appraisal

Distinguish the value opinion, purchase price and loan

Read the report's property identification, purpose, intended users, effective date, scope, assumptions and supporting analysis. Check factual information and ask the appropriate lender or appraiser about errors through its review process. A value opinion is not a guaranteed sale price, future return, loan approval or complete condition inspection. Obtain a property-specific fee and scope rather than assuming one price or a percentage of every loan.

In a purchase, an appraisal gap commonly means the agreed price exceeds the appraised value. That differs from negative equity, where debt exceeds the property's value. The CFPB lower-appraisal guide discusses reviewing the report and purchase options. Have the lender and qualified advisers explain the financing effect, any additional funds and the actual contract's contingency, deadlines and gap commitment. A label such as guarantee does not establish a cancellation right or protect everyone involved.

An appraisal waiver is a lender or program decision under specific conditions, not removal of the property's value from the transaction. Fannie Mae's value-acceptance guidance illustrates eligible cases where an appraisal is not required; it is not universal eligibility. Confirm the process for the actual loan and keep independent condition review separate. Rentari does not provide an appraisal, determine collateral value or secure a waiver through this definition.