Bridging the Appraisal Gap in Today's Real Estate Market

By
Real Estate Agent with JP and Associates 486174
It happens from time to time. The home appraisal comes in LOW 
 
With how quickly this Austin market is appreciating, comparable sales can be lagging, which causes what we call an “appraisal gap.”
 
 
What can you do in this situation?
 
IF YOU’RE A BUYER:
 
 Submit recent comps to your appraiser for consideration
 Add appraisal gap coverage to your offer
 Waive the appraisal contingency (in some cases)
 
IF YOU’RE A SELLER:
 
 Don’t accept an offer solely on price
 Look at a buyer’s mortgage qualifications
 Look at conditions – such as waived contingencies
 
Read our latest blog post to learn more about how appraisals work and the benefits and risks involved with these competitive tactics.
 
 
 
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Comments (4)

John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Hello Anne Edwards Johnson very good report about bridging the appraisal gap in today's real estate market.

Jul 06, 2021 01:56 PM
AndreaBFerreira CRS - SRS - CLHMS
Keyes Co. - Davie, FL
Miami Dade, Broward and Palm Beach County in FL

Very true, I always ask the Mtg broker if the appraiser will be local, less risks for mistakes. Thank you

Jul 06, 2021 03:04 PM
Anne Edwards Johnson
JP and Associates - Austin, TX
Austin Realtor | HookemhomesATX (512)917-5260

John Pusa AndreaBFerreira CRS - SRS - CLHMS Thank you for stopping by.  It is so important to talk with the lender before #waiving an appraisal. We are seeing more partial waivers in #Austin these days. 

Jul 06, 2021 06:17 PM
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Excellent post, Anne Edwards Johnson 

Appraisers can be on the end name calling by an agents or buyer or seller when an appraisal comes up short. Yet, appraisers have a challenge bringing in an appraiser that meets the contract price when using sold comps from a month ago to justify today’s rapidly escalating prices. Not all buyers are willing and able to make up an appraisal gap. Agents must discuss with their clients the likelihood and consequences of an unsatisfactory appraisal when writing an offer.

Sep 20, 2021 08:56 PM