Arizona Home Values - Waiving Appraisal Contingencies 
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HOT Topic - Waiving Appraisal Contingencies
As our Arizona market has quickly evolved from a buyer's market to a seller's market, we're starting to see contracts written with the appraisal contingency waived. This isn't an issue if the buyer is paying cash or utilizing a conventional loan. However, it is a major problem if the buyer is using an FHA or VA loan which is nearly half of all loans processed.
FHA and VA loans DO NOT allow the appraisal contingency to be waived, ever! Buyers utilizing these programs SHALL NOT incur any penalty by forfeiture of earnest money or otherwise be obligated to complete the purchase of the property if the house doesn't appraise for the purchase price, regardless of what verbiage a Realtor® may add to the contract. This is the buyer's right under an FHA or VA loan and can not be waived.
The buyers can elect to waive appraisal contingencies and proceed only if they can afford to pay the difference between the negotiated purchase price and the current appraised value. If your a seller and would like to request the appraisal contingency be waived, you'll need to make sure your Realtor® focuses on cash buyers or those using a conventional loan.
If you have any questions about this update or appraisal contingencies, please don't hesitate to call me, (480) 570-5500. I'm committed to delivering an honest, well-communicated and knowledge-based real estate experience. Angie Johnson, www.AngJohnson.com
Phoenix Market Update, June 2013
Metro Phoenix's median home-sales price has now climbed to over $181,000. That number represents a nearly 60% increase from the Arizona Real Estate crash's low price in August of 2011. However, despite the increase in sales prices, we are NOT projecting another housing bubble in the Phoenix area anytime soon.
We are seeing our home values increase to a healthy level and predicted prices would rise significantly during the strong annual buying season that lasts through the Summer months. Also, there is a chronic shortage of available houses listed for sale currently which is helping to drive prices up.
If you or anyone you know is interested in Buying or Selling Real Estate in Phoenix, Scottsdale, North Scottsdale, Chandler, Gilbert, Mesa, Carefree, Cave Creek, Anthem, Sun City West, Surprise, Golf Homes in the Valley or any other Phoenix area city, now is the time. There are numerous incentives, great deals on new construction, quick selling time lines and so on as reasons the time is ripe for buying or selling in Arizona.
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