Yeah, those AVMs can be hit or miss. I remember one property I was refinancing a couple years back—the automated valuation came in ridiculously low because it was pulling comps from a totally different neighborhood. Ended up having to get a full appraisal anyway, which thankfully came in right where I expected. Curious if anyone's had better luck lately with AVMs, or are lenders still mostly insisting on full appraisals?
I've noticed lenders still being pretty cautious with AVMs lately. When I refinanced last year, the automated valuation was actually decent, but the lender still wanted a full appraisal to confirm. Honestly, I didn't mind—it gave me peace of mind knowing the value was accurate and based on actual comps nearby. Maybe lenders are just being extra careful these days? Has anyone managed to skip the appraisal step entirely recently, or is that pretty rare now...?
I've actually heard of a few people skipping appraisals lately, especially if their loan-to-value ratio is pretty low. Maybe your lender was just extra cautious? Curious if it depends more on the lender or the borrower's specific situation...
I've noticed that too, but honestly, lenders seem all over the map lately. A friend of mine refinanced recently and they skipped the appraisal entirely, but another buddy—same neighborhood, similar LTV—had to jump through hoops. Makes me wonder if it's more about internal lender policies or maybe even the underwriter's mood that day... anyone else feel like refinancing is a bit of a lottery these days?
"Makes me wonder if it's more about internal lender policies or maybe even the underwriter's mood that day..."
Honestly, it really does feel a bit arbitrary at times. I've been in this industry long enough to know there's usually method behind the madness, but lately... even I'm starting to wonder. Internal lender guidelines have tightened up in some areas and loosened in others, and the criteria can shift pretty quickly depending on market conditions or investor appetite. Underwriters are human too, so while I doubt it's purely mood-based, there's definitely room for subjective judgment calls.
I had a client recently who sailed through refinancing with no appraisal, yet another client—same lender, similar profile—got hit with a full appraisal and extra documentation requests. Makes you scratch your head, right? Maybe the bigger question here is: are lenders becoming overly cautious because of market uncertainty, or is this inconsistency just the new normal we're stuck with?
