What does the term "appraisal waiver" mean?

The term "appraisal waiver" refers specifically to a lender's decision not to require an appraisal for a property involved in a loan transaction. This typically occurs when the lender has sufficient information to assess the property’s value, such as through automated valuation models or previous appraisals, thereby eliminating the need for a formal appraisal process.

This option highlights a significant aspect of modern lending practices, where efficiencies are sought by leveraging technology and existing data, potentially speeding up the transaction process while reducing costs for both the lender and the borrower. In some cases, borrowers may benefit from expedited loan approvals without the additional time and expense of a property appraisal.

The other options do not accurately convey the meaning of "appraisal waiver." For instance, a property being automatically exempt from appraisal requirements represents a misunderstanding of the nuances involved, while discounts on appraisal fees or special certifications speed up the process are unrelated to the concept of a waiver itself.