The appraisal supports the price. Few people, including many RE agents, are aware of recent developments in valuation. Please, read on...
On 4/19 I was checking market values with a Boston appraiser. The good news - he indicated some Boston/Cambridge neighborhoods are 'value' stable. Back Bay, South End, Fenway, Beacon Hill in Boston and Harvard Square in Cambridge, to name some. Values are plummeting in others - South Boston, Dorchester, and parts of East Cambridge. Not much of an eye-opener for me.
Then the appraiser told me that loan underwriters are taking values and marking them down further. As much as 20% in some areas. This being done to cover the lender's downside in event of foreclosure or in selling the loan outright. So it's not enough to 'sweat' the sale thru appraisal, now it's thru underwriter's valuation!
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