….WARNING…things aren’t the same as they used to be!
Bet you knew that, right?
Let me tell you, earlier this year this post would’ve been completely different than it is today. During the economic/real estate nightmare of the last two years, appraisals have been a ‘last minute’ issue when selling a home.
You may think, why?? Trust me, I’m of the school of thought that a home is only ‘worth’ what a buyer is willing to pay. But after this financial crisis, the lenders are understandably scared of lending money on homes that aren’t worth their price. They’ve lost a ton of money on foreclosures and new rules have been put on appraisals to keep this mess from happening again. The new HVCC (Home Value Code of Conduct) for Fannie & Freddie loans turned the real estate world upside down for a while.
But, thankfully, I can now report that informed consumers are now more reasonable about the value of their home. Real estate agents have been through enough transactions in this economy to be have more confidence in their pricing opinion.
Earlier in the year, I would’ve guessed about >50% of the homes that were selling were having appraisal issues right before close. When there’s an appraisal issue, the seller either has to come down on price or the buyer has to come to the table with the difference between the contract price and the appraisal price. If the parties can’t agree, the contract fails. You can see how this would not only be a nightmare for the agents to negotiate, but also extremely stressful for the buyers and sellers.
I can actually say that it’s been several months since I’ve seen an appraisal issue come through on a pending sale. Thank goodness!!
One thing is for sure, though. You need an experienced company on your side when you’re ready to buy or sell your home. We’re still stumbling through an economic crisis; and you’ll need a strong and confident helping hand.
You know where to find me!
Until next time—I hope you’re enjoying this beautiful fall weather as much as I am!