How to Bridge the Appraisal Gap in Today’s Real Estate Market

By
Real Estate Broker/Owner with Legacy Land & Homes, LLC 10491202162

 

 

If you’re searching for drama, don’t limit yourself to Netflix. Instead, tune in to the real estate market, where the competition among buyers has never been fiercer. And with homes selling for record highs,1 the appraisal process—historically a standard part of a home purchase—is receiving more attention than ever. 

 

That’s because some sellers are finding out the hard way that a strong offer can fizzle quickly when an appraisal comes in below the contract price. Traditionally, the sale of a home is contingent on a satisfactory valuation. But in a rapidly appreciating market, it can be difficult for appraisals to keep pace with rising prices.

 

Thus, many sellers in today’s market favor buyers who are willing to guarantee their full offer price—even if the property appraises for less. For the buyer, that could require a financial leap of faith that the home is a solid investment. It also means they may need to come up with additional cash at closing to cover the gap.

 

Whether you’re a buyer or a seller, it’s never been more important to understand the appraisal process and how it can be impacted by a quickly appreciating and highly competitive housing market. It’s also crucial to work with a skilled real estate agent who can guide you to a successful closing without overpaying (if you’re a buyer) or overcompensating (if you’re a seller). Find out how... 

 

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"Your Satisfaction Is Our Legacy"

 

Curtis Darragh
Licensed Real Estate Broker
Legacy Land & Homes, LLC
17 Collegeview Avenue, Bld 2
Poughkeepsie, NY 12603
Bus: 845-206-9462
Fax: 845-230-8657



       


    
 

Comments (2)

Trish Cole
Veterans United Home Loans of Puget Sound - Puyallup, WA

Great information for home buyers in this crazy market.  Thank you for the in-depth informaiton, along with sources.

Jul 13, 2021 01:37 PM
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Hello Curt Darragh very good report about how to bridge the appraisal gap in today's real estate market.

Jul 13, 2021 02:20 PM