Appraisal
HI,
There was an article in the AZ Republic today about the disparity between home prices and appraisals. We have been talking to our clients for a while about this issue. Appraisals are performed based on past closings. Unfortunately, as value is in the eye of the beholder, and people are willing to pay higher and higher prices, the past comps used for the appraisal are having difficulty catching up. The biggest problem this causes is extreme frustration for both the buyer and seller. If an appraisal isn't ordered immediately, a house can be off the market for a few weeks, everybody is gearing up for the move, and then disappointment hits if it doesn't appraise. We advise people not to waive the appraisal clause in a contract. Even though most people understand that the values continue to go up, most people are not willing to come up with the extra funds necessary to make the deal happen. Tomorrow, we will explain a little about how the appraisals are performed and what to look for in a purchase regarding appraisal.
Have a great evening.
Adam Tarr and Sharon Kotula
Your Phoenix Real Estate Source