Appraisal waivers have become more common as automated underwriting systems evolve. But most buyers misunderstand what a waiver actually means. It does not mean the lender thinks the property is worth the price. It means the lender has enough data to feel comfortable without a full in person appraisal.

In NYC, where coops, condos and unique homes dominate, these waivers are far less common than in suburban markets.

What an Appraisal Waiver Actually Is

Fannie Mae and Freddie Mac allow lenders to skip a traditional appraisal when:

• The buyer has a strong financial profile.

• The property type has enough comparable data.

• The loan fits specific automated underwriting conditions.

The system generates a “Property Inspection Waiver” or “ACE Waiver.”
The lender then proceeds without sending an appraiser.

What a Waiver Does NOT Guarantee

• It does not guarantee the price is fair.

• It does not guarantee the home is in good condition.

• It does not stop an underwriter from requesting additional info.

• It does not protect you from overpaying.

Waivers remove the appraisal requirement, not the risk.

Why Waivers Matter in NYC

• Unique homes rarely qualify because comps are inconsistent.

• Coops often fail due to limited data in the system.

• Renovated vs unrenovated units skew valuations.

• Buyers may mistakenly think a waiver means “the bank agrees with the price.”
  It does not.

Use the waiver as a speed advantage, not a price endorsement.

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Joseph Ranola | Five-Star Staten Island & South Brooklyn Realtor® (30 + Google reviews)
Associate Broker · Matias Real Estate | Founder · Bridge & Boro Team
Serving 103xx and 11209 / 11214 / 11228 | $25 M + closed volume
📞 917-716-1496 | ranolarealestate.com