The National Association of REALTORS® reported that 16 percent of real estate professionals surveyed in June reported a cancelation in a sale, mostly due to a large number of low appraisals. Many real estate professionals are watching deals unravel, with some appraisals coming in 10 to 20 percent — or even more — below the accepted offer.
“Over the past decade, finding ‘comps’ that accurately reflect values has been a challenge as values rose quickly during the boom and fell just as fast during the bust,” according to a recent article by RISMedia, 5 Ways to Fight a Low Appraisal. “Discounts paid for foreclosures and short sales have created a dual price structure between ‘normal’ and distress sales.”
As a seller or a buyer, be prepared before you open an escrow on any transaction or even on a refi.
Call to discuss further – Regina Singh @ 714-883-5205