Posted in Home Appraisals

Low Appraisals Continue To Thwart Deals

Home appraisals coming in for lower than the agreed upon selling price of a home is making it difficult for some home buyers to take advantage of the market. About one-third of real estate professionals say low appraisals have caused a transaction to fall through, be delayed, or have to be re-negotiated, according to National Association of REALTORS® housing data. The main culprit for the disconnect? Many housing experts blame it on appraisers continued use of distressed sales as comparables when conducting valuations. The low appraisals have caused many borrowers to stay “in a holding pattern for extended periods” because it’s difficult to find comparable sales to support the appraisal value, Terry Moore, global managing director of Accenture Credit Services, told The Wall Street Journal. Ron Phipps, NAR’s immediate past-president and real estate broker in Warwick, R.I., told The Wall Street Journal that about half of his home sales have had appraisal problems. To help counter low appraisals, appraisers say it’s perfectly acceptable for borrowers to point out home improvements to an appraiser during the inspection process and to provide comparable sales to justify what they think the valuation should be. In cases of seemingly lowball appraisals, borrowers can also request an appraisal review from their lender. Some lenders may even grant a request for a second appraisal to be completed if the first one can be shown to be inaccurate based on comparable sales.

source:  Wall Street Journal

Advertisements

Author:

Thank you for being here. I'm a Real estate agent with Keller Williams Signature.I hope that you can visit my website www.jeanethjimenez.com whether you are looking for homes for Sale or buy or just as a source for real estate information.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s