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Will Low Appraisals Become a Problem?

By
Real Estate Agent with Ansley Real Estate/Christie's International 262285

The spring 23 market is on around Atlanta and other areas, as the market heats up so do the questions. Will low appraisals become a problem again? After the nonsensical last two years, underwriters and lenders are tightening the reins when it comes to appraisals. 

Low Appraisals Become More Frequent

 Already this year, there has been an increase in appraisal related issues. Most frequent with VA and FHA loans as underwriters get back to holding the appraisals to strict underwriting. Appraisers have been receiving updates from FNMA as well, reminding them of "best practices" as the early 2023 housing market evolves.

It would be a good idea for agents to reacclimate themselves with appraisal guidelines and understand how underwriters and appraisers will be approaching this spring.

 

 

Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Low appraisals can be a real problem and they look at property values differently than agents do.  It is a good idea to try to understand their thought process and that of the underwriter's. 

Feb 22, 2023 06:51 AM