The Prince William County area is considered a declining market due to the significant amount of foreclosures in the county and major losses in property values. As a result many lenders are asking for 2nd appraisals. Lenders are very concerned about their investments and want to make sure everything is legit.
The other day I received a call from a lender that was financing one of my sales. He informed me that the 1st appraisal didn't make a mention to the area being in declining market and therefore they were going to order a 2nd appraisal. In a declining market appraisals are supposed to show a 5% difference in the appraised value. This is frustrating for sellers and agents alike. We thought we had everything in order and then when it all came down to it we found out all this information. Not to mention that the buyers are already 2 weeks late to close on the home. Also the home that is in question is a very nice home, not bank owned or a short sale and the owner has put quite a bit of work into upgrading it.
I have prepared my seller for the worst. The 2nd appraisal may come in at the same value or less and we need to figure out what we will do.
Are you experiencing similar situations in your market?
Comments (2)Subscribe to CommentsComment