Appraisers v. Homeowners
In today’s real estate market, where there are more buyers than sellers, home values are rising rapidly. Many experts project home values will appreciate by an additional 5%+ over the next 12 months. In this type of market, the appraisal becomes a major challenge.
When prices rise rapidly, it is difficult for appraisers to find good, comparable sales (similar houses in the neighborhood that sold recently) to support the purchase price for the lender.
Over the last 12 months, Quicken Loans measured the difference between what sellers believe their house to be worth compared to an appraiser’s valuation.
Real Estate Bottom Line
Homes for sale need to be “sold” twice – first to a prospective buyer and then to the buyer’s lender (through the appraisal). With rising prices, the sale to the lender could be more difficult than the sale to the buyer. If you are planning to buy a home, let’s get together to discuss appraisal issues, and any other obstacle that may arise. I want to make sure you get to the closing table!