This is not a rant, I promise. Just an observation. During our Spring market every year, we see an increase in multiple offers for homes that are priced right. This year is no exception. However, we are still dealing with a very low inventory issue. There just are not enough homes on the market to meet the needs of the buyers looking for homes.
I remember some of my economics classes from school. Somewhere in there we discussed supply and demand. In short, when supply is low and demand is high, prices tend to go up. We are definitely seeing this overall increase in prices.
My particular issue is that the appraisals for homes do not seem to be keeping up. An agent in my office was dealing with 3 offers on a home she listed. The home had been on the market for just a couple of days. An offer for $10,000 over list price was accepted. The resulting appraisal came in $35,000 under list! To make matters worse, a home 2 doors down, same floor plan, not as nice, and also listed by this agent appraised for $17,000 more.
Appraisals are very subjective and I am not sure why. All appraisers are supposed to follow the same rules, yet the results can be very different. Somehow, I don't think appraisers took basic economics classes, or slept through them. Unfortunately, to sell a home we need three approvals...Buyer, seller, and appraiser.
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