Today as I was discussing an appraisal issue with a couple of fellow practioners, I learned that appraisals are suddenly becoming more of an issue. And, unlike a year ago, it's not really because appraisers that don't know the market place, but more because of the market changes. A year ago, 6 months ago, we had a lot more distress sales in the market....and the "traditional" sellers had to compete with the distress sales in order to be able to sell. But for the past 6 months things have been absolutely ROCKING and there has been upward pressure on sales prices... and we ARE seeing prices go UP. (Sellers - this is where you cheer: YAY!)
BUT, (and there's always a BUTT, isn't there?), appraisers are pulling comps of past sales... You know, from when we had so many distress sales, and when the market wasn't so hot. As a result, appraisers are having a hard time justifying the new sales prices that the market is bringing. THAT is a problem we haven't had for several years. It's good news...."ish"... I guess. Well, the cause is good. The side effect - not so much. (Buyers and sellers together: Boooo!) A low appraisal can kill an otherwise perfect real estate sale.
Honestly, I am frustrated. I get it, but I am frustrated. "Fair Market Value", is, by definition, what a willing buyer and seller agree to in an arms length transaction. It is not what an appraiser thinks. And yet, appraisals are holding back our market recovery.
So I am trying to be an optimist here, and focus on the positive - the market is strengthening. And I will try to take the problems in stride. Dear sellers, and buyers, I hope you do, too. Real estate these days is not always a fun game to play.
In the mean time, take a look at theses posts:
To make you laugh: Your Home, as seen during a real estate transaction.
To help you get your appraisal: Get the best appraisal for your home.
Interested in learning more about our market place? Visit the Market Statistics part of my web site for the latest news, stats, and information.