Low-Ball Appraisals are Causing Problems
The appraisal process is becoming a major stumbling block for home buyers and sellers.
Realtors® are expressing a variety of concerns:
· Appraisers are being unrealistically overly cautious.
· Some appraisers are using foreclosures and short sales as the basis for evaluating market values, thereby encouraging price declines.
· The current bottleneck of appraisals is resulting in delayed appraisals and the use of appraisers who are unfamiliar with local market conditions.
· There’s a lack of comparables in some areas due to a market slump caused by economic concerns and local flooding.
The result is a rising number of mortgage appraisals that are coming in below negotiated sale prices. Low appraisals can be frustrating, costly to all parties involved in the transaction, and cause the deal to fall apart entirely.
Readers, have any of you experienced recent appraisal issues?