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Um, isn't what people are willing to pay for homes a huge component of the marketplace?
Ryan Huggins - Thousan...
Thousand Oaks, CA
Panama City, FL
Richard L. Sanderson
San Jose, CA
Pacific Palisades, CA
Thankfully, in Canada rarely is an appraisal required on a sale. The power you give to these appraisers is unimaginable up here on what is at best, an opinion not fact.
Pacific Palisades, CA
Three things to consider are:
1. We're in a Seller's Market, so waiting could be very costly
2. If you are purchasing with a Mortgage, the Appraisal will generally help to bring the seller's thinking in line
3. Once a sales price is recorded on County Record, generally the property is then worth the amount paid and can help with the apprciation of the neighborhood as other sellers will use your purchase as a new comparable sale to increase their asking price, etc.
Kenneth J. Jones nailed this one!
Sounds contradictory, but it happens. House with multiple offers, you would THINK it would appraise, but we just came in $20K low. Grrrr!
We are having such a strong selling market that we are getting appraisals below purchase price maybe a 25% of the time. Kenneth J. Jones said it correctly, appraisers are operating in fear and do nothing to try to justify an increase in value. Plus with these appraisal management companies they are sending people from three or four counties away. Yes, they pay their MLS dues but they do not know our market. Disaster! They almost always come in low because of their lack of understanding our local market.
I've only had one low appraisal recently and it was truly one I thought would be lower. The price the buyers wrote was higher than our already high list. The appraisal was still above where I thought it would be based on comps.
I am not seeing this in my area.
Anthony Acosta - ALLAT...
If one is priced to sell and that dynamic is bounced off of comps, the appraisal has to come in with plus or minus based on condition & location etc. It is not a mystery but instead a science. Science is methodical
Richie Alan Naggar
Yes, it's true. With lack of inventory the homes are getting bid up in price in some instances.
If the buyer is willing to pay that, why would appraisers not get with the program? I don't think appraisers are trying to purchase a home right now lol.
I'm scared to death that things won't appraise. We are still unloading foreclosures here.
Nice to see you Mr P!!
If this is a situation in the market which may be experiencing rising sales prices, then it needs to be addressed when offers are received. It's quite common in our market to request that if there is an appraisal issue, the buyer will need to make up any difference. Choosing the right buyer with the ability and desire to buy the home is crucial.
Appraisals are coming in at or above in my area. Haven't had a low appraisal since January.
Ok, I'm not clear on this one - isn't market price and what a buyer is willing to pay the same? What did I miss?
The appraisers truly have a lot of pressure when it comes to appraisal value vs. market value. Support your numbers with comps.
I have not experienced the problem.
Lately our appraisals have been coming in near the price.
William Piotrowski - appraisals are dictated by recent sales - and recent sales are high enough, why should appraisals be low?
In my area they come in at or above sales price about 95% of the time.
Under-appraisals are most worrisome if market forces push prices over asking - multiple offers are happening in the most popular price points in the NJ market. Aside from that, more often than not, the appraisals are coming in on the money.
The market does support prices now, since they leveled last few months.
Depends on how good the listing agent is at providing the appraiser with good comparable sales!
95% at price, a couple are below. I often can handle the lower appraisal.
Buyers are told they need to pad the difference at the time of making an offer. We often release the appraisal contingency at the time of making an offer.
I am seeing a 90% coming in just above and only about 3-4% real low appraisals
About the only time we see it in Oklahoma City is when the seller has very little equity and the buyer no money for closing cost and is asking for it. When the price goes above listed then it can happen.
I've not had any appraisal issues in the last couple of years, and some have come in a little higher than purchare price
In large stretches of California (I could probably say most but won't because I don't quite have that much data in front of me right now), selling price is hovering around 98% of listing price. There are entire cities where selling price on average exceeds listing price. I would say that the market may not support these prices in the future, but by definition is definitely supporting these prices now.
This is a statement, not a question. What are you looking for from us? Agreement, or denial?