Beginning Oct. 9, 2019, certain home sales of $400,000 and under will no longer require an appraisal.
Under previous rules that have been in place since 1994, appraisals were not required on all home sales of $250,000 and below, but last year, federal regulators proposed increasing the appraisal threshold for the first time in 25 years.
Last November, the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency, and the Board of Governors of the Federal Reserve released a proposal to increase the appraisal requirement from $250,000 to $400,000, citing the home price appreciation that’s taken place since the threshold was last increased in 1994.
Last month, the agencies all approved the rule. And Tuesday, the rule was published in the Federal Register, making the appraisal threshold increase effective the following day, Oct. 9, 2019.
That means that certain home sales of $400,000 and below will no longer require an appraisal as of Oct. 9, 2019.
Suraj Shrestha is an associate at Harborside Partners. He has been taking the lead role on research projects; to develop and implement online marketing strategies for search engine optimization and social media marketing. He is one of the core parts for helping to grow business revenue and the company’s online presence.