Found 3 blog entries tagged as appraisals.

house on persons headThe great Atlanta real estate market adjustment of 2022 is upon us. As everything shifts, the main players are whispering around the water cooler...will low appraisals be a problem now? Probably not a bad question as the changes in quarter 2 of 2022 were dramatic. As the Fed fights rampant inflation, buyers are faced with dramatic rate increases and sellers with a comparative lack of activity. Lenders and appraisers are also impacted; both industries are circling the wagons just a bit tighter as everyone waits for this market to settle.

No More Appraisal Gimmies

The real estate market coming out of Covid from about fall of 2020 through spring of 2022 was an anomaly. The Fed held rates artificially low by buying billions of dollars of mortgage backed…

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Home prices continue to push higher than any time in history; yet real estate appraisals continue to be a problem. Low appraisals despite record appreciation? How is this possible with next to no low inventory, ravenous buyers and bidding wars? As it was just over a decade ago, the disconnect between appraisers, agents and the public remains. This time the economic conditions are different and the public has more exposure to data but the appraisal process remains a mystery.

The Role of the Appraiser

The appraiser represents the buyer’s lender; they do not work for the buyer, the seller or any agent. Their job is to ensure that if the lender has to foreclose on the property, the amount they lent to the buyer can be recovered. Appraisers follow…

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waive the appraisalIs it wise for buyers to waive the appraisal contingency? Appraisals continue to cause agita among many in the home buying process. Is the answer to eliminate it? Current offers reflect the “current” market (listings/pendings) while appraisals reflect the “past” market (solds). This is an inherent conflict especially in a transitional market. When inventory is tight and seller markets exist, the "cleanest" contracts get the most attention. Cash buyers can obviously waive the appraisal contingency completely. Buyers with mortgages must have an appraisal, but there are ways to ease a seller's mind even when an appraisal is required.

Waiving the appraisal contingency is done to present a more streamlined and competitive offer. Completely eliminating the…

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