Here in the Charlottesville, Virginia area we are starting to see a good response to the market.  More traffic through open houses, more buyers calling for showing, plus more contracts.  Whew....had me worried for a while.

However, a new problem is starting to present itself and I was wondering what the rest of the Active Rain community was seeing. 

Some of our agents are starting to see really low appraisals coming in.  Not close to the selling price, which we can handle, but way out of line $35,000 or more.  Of couse the agents go back to the market information and can't figure out where the appriasers are coming up with their price.  A few have even called and run into a wall.  Comments like "depressed neighborhood" or "depressed community" "to many houses on the market to support the sale price" have been used.

Are you running into this? If you are how are you responding?  How should we or can we use this information to help educate future seller when pricing?