Are low home appraisals a problem in today's real estate market?

The question comes after reading a December 31st piece by nationally
syndicated real estate columnist Kenneth Harney. He writes ...

"For sellers, appraisers' opinions of property value in softening
markets can be like pails of ice water: Sorry, but your house is worth
$100,000 less than it was last summer or spring."

Harney writes that prices are softening, even in hot markets like
Southern California, Arizona and Florida, and especially in the middle
and upper price brackets.

Harney's column is about appraisers as an unseen force in today's
weakening market.

Anybody had problems with appraisals coming in so low they present
poblems in selling? It is my understanding that appraisers know what
the contract price is. In my case, the appraisals have typically come
in at or slghtly above the sale price, both in buying and selling, so it
has never been an issue. I've never seen a major discrepency, but I'm
wondering if we will have problems in the changing market, as prices
weaken. Harney writes that unsold inventories of houses are turning
into a glut. You should be able to find his column in many local
papers, as it is syndicated through the Washington Post. Bob

Re: Are low home appraisals a problem in today's real estate market?

"BushkaBob" <> wrote in message
news:
>
> Anybody had problems with appraisals coming in so low they present
> poblems in selling? It is my understanding that appraisers know what
> the contract price is. In my case, the appraisals have typically come
> in at or slghtly above the sale price, both in buying and selling, so it
> has never been an issue. I've never seen a major discrepency, but I'm
> wondering if we will have problems in the changing market, as prices
> weaken. Harney writes that unsold inventories of houses are turning
> into a glut. You should be able to find his column in many local
> papers, as it is syndicated through the Washington Post. Bob

I have noticed a few times that appraisals come in very close to if not
right on the price buyer and seller have agreed on in the offer of purchase
and sale. It is my understanding that often the appraisers don't want to
muddy the waters and prevent deals from going through, which would disturb
the folks who want it to happen and be bad for future business.

Re: Are low home appraisals a problem in today's real estate market?

"BushkaBob" <> wrote in message
news:
> The question comes after reading a December 31st piece by nationally
> syndicated real estate columnist Kenneth Harney. He writes ...
>
> "For sellers, appraisers' opinions of property value in softening
> markets can be like pails of ice water: Sorry, but your house is worth
> $100,000 less than it was last summer or spring."
>
> Harney writes that prices are softening, even in hot markets like
> Southern California, Arizona and Florida, and especially in the middle
> and upper price brackets.
>
> Harney's column is about appraisers as an unseen force in today's
> weakening market.
>
> Anybody had problems with appraisals coming in so low they present
> poblems in selling? It is my understanding that appraisers know what
> the contract price is. In my case, the appraisals have typically come

Appraisers always ask about the contract price and appraisals in a rising
market like the past 5 years were almost always equal to the sale price.
Their argument is that the sale price is the market price and they massage
their data to some how come with an appraised value equal to the sale price
thanks to the creative adjustments they can apply and price them
appropriately. While they are getting more conservative to avoid law suits
and to cover their rear end now, I saw something unsual lately. There was a
condo listed for $418,000 and after 30 days the seller dropped the price to
$408,000 and it was sold at $408,000 but the appraisal came in at $412,000.
I have not seen this in along tome.

> in at or slghtly above the sale price, both in buying and selling, so it
> has never been an issue. I've never seen a major discrepency, but I'm
> wondering if we will have problems in the changing market, as prices
> weaken. Harney writes that unsold inventories of houses are turning
> into a glut. You should be able to find his column in many local
> papers, as it is syndicated through the Washington Post. Bob
>

Re: Are low home appraisals a problem in today's real estate market?

"BushkaBob" <> wrote in message
news:
>
> Anybody had problems with appraisals coming in so low they present
> poblems in selling? It is my understanding that appraisers know what
> the contract price is. In my case, the appraisals have typically come
> in at or slghtly above the sale price, both in buying and selling, so it

Appraisers always ask about the contract price and appraisals in a rising
market like the past 5 years were almost always equal to the sale price.
Their argument is that the sale price is the market price and they massage
their data to some how come with an appraised value equal to the sale price
thanks to the creative adjustments they can apply and price them
appropriately. While they are getting more conservative to avoid law suits
and to cover their rear end now, I saw something unsual lately. There was a
condo listed for $418,000 and after 30 days the seller dropped the price to
$408,000 and it was sold at $408,000 but the appraisal came in at $412,000.
I have not seen this in along tome.

www.AmericanWest.biz

> has never been an issue. I've never seen a major discrepency, but I'm
> wondering if we will have problems in the changing market, as prices
> weaken. Harney writes that unsold inventories of houses are turning
> into a glut. You should be able to find his column in many local
> papers, as it is syndicated through the Washington Post. Bob
>