Homeowners are thrilled to see the values of their homes continue to increase as the real estate industry is recovering and stabilizing. The strong demand for housing and the low supply of inventory have continued to drive up home prices in the Florida real estate market, as well as nationwide! Buyers are expected to be prepared to make strong offers due to the rising prices and mortgage rates. We have been witnessing multiple offers and bidding wars taking place in today’s market too. This appears to be great news for sellers, as they are now receiving offers equal to or above their listing prices. Sellers do, however, need to be mindful of how an appraisal can create challenges in closing their real estate transaction.
We noted earlier this year that appraisers were finally beginning to place higher values on homes, allowing for more sales to go through and for the market to gain strength. Recently, however, it appears in some cases as though appraisers are not quite keeping up with the fast-paced recovery of the real estate industry. Sellers should take caution before over-investing in remodeling and upgrades prior to selling, because there is no guarantee that the appraiser will value them to the same degree as potential buyers.
When appraisal values come in under the contract price, agents will often make efforts to re-negotiate the sales price in order to save the deal. It is important to remember that most banks will only finance the appraised amount, not the amount listed on the contract, and a potential buyer could need to come up with any additional needed funds upfront to salvage the sale.
Low appraisals pose as obstacles for buyers, sellers, and real estate professionals everywhere. The best course of action to protect your home sale from falling through, or missing out on your dream home, is to surround yourself with a team of real estate professionals who possess an abundant knowledge of the Tampa real estate industry and have your best interests in mind. At SI Real Estate, our dedicated team is purposed to help fulfill all of your real estate needs and to provide valid information of the right steps to take when facing the inevitable obstacles involved in home sale transactions.
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