In today’s housing market, where supply is very low and demand is very high, home values are increasing rapidly. Many experts are projecting that home values could appreciate by another 5%+ over the next twelve months. One major challenge in such a market is the bank appraisal.
If prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that recently closed) to defend the selling price when performing the appraisal for the bank. Lenders are constantly facing the disparity between what a homeowner who is seeking to refinance their home believes their house is worth, as compared to an appraiser’s evaluation of that same home.
While a 1 or 2 percent difference in home value opinions may not seem like a lot, it could be enough to derail a mortgage.
A homeowner [or a buyer] could be forced to bring more cash to closing in order to make a mortgage work if the appraisal is lower than expected. On the other hand, if an appraisal comes in higher, they could be surprised with more equity than they had planned. Either way, if owners are aware of their local markets it will lead to smoother mortgage transactions.”
Every house on the market has to be sold twice; once to a prospective buyer and then to the bank (through the bank’s appraisal). With escalating prices, the second sale might be even more difficult than the first. If you are planning on entering the housing market this year, let’s get together to discuss this and any other obstacle that may arise.
Author:Yael Shanee Phone: 917-705-3717 Dated: July 14th 2017 Views: 233 About Yael: Real Estate Agent CBR (21 years experience)
Specialties: Buyer's & Seller's Agent, Income and Mixed...
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Prime Realty was founded by Mitchell Slavuter a licensed broker in 2009. Although, Prime Realty is a relatively young company, Mitchell has been in the business for 15 years. Mitchell's love of Real Estate has brought Prime Realty where it is today and continues to grow in leaps and bounds presently staffing over 80 dedicated and enthusiastic Sales Associates, which whom Mitchell shares his passion and eagerness for the business. Please get to know them and put a name to their faces as well, by viewing their individual biographies.
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"I highly recommend Yael to anybody who needs a Professional dedicated Real Estate Agent. Yael helped me sell my home and simultaneously looked for another home to buy. She was extremely helpful, patient and dedicated professional, who is very savvy the material. I had a great pleasure working with her and would Highly recommend her to anybody who needs a good agent to walk you through the process so diligently"