A proposed plan would raise the home price requiring an in-person appraisal from $250,000 to $400,000.
The proposal, developed by the Federal Deposit Insurance Corp., the Board of Governors of the Federal Reserve System, and the Office of the Comptroller of the Currency, would mark the first increase since 1994, when the median home price was around $130,000. According to Realtor.com, the median home price is now around $295,000.
If approved, it could save buyers and homeowners attempting to refinance about $500, which is the average cost of an in-person appraisal. Skipping the appraisal visit would also likely lead to quicker closings.
The problem is, these nonhuman appraisals are not as reliable, says New York City–based real estate appraiser Jonathan Miller, who works nationwide.