Appraisals Will No Longer Be Required on Certain Home Sales of $400,000 and Under
Soon certain home sales of $400,000 and under will not need an appraisal. Federal regulators have approved a proposal to increase the threshold at which residential home sales require an appraisal. Last November, the Federal Deposit Insurance Corp. (FDIC), the Office of the Comptroller of the Currency (OCC), and the Board of Governors of the Federal Reserve released a proposal that would increase the appraisal requirement from $250,000 to $400,000, meaning that certain home sales of $400,000 and below would no longer require an appraisal. The agencies deliberated the rule for nearly a year, taking into consideration the more than 560 comments the agencies received about the rule change. Last month, the FDIC and OCC signed off on the rule but were still waiting on the Fed to approve the rule change as well.
Now, the Fed has also given the rule change its stamp of approval, and with all three agencies signing off, the appraisal rule change will soon go into effect.