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REAL ESTATE MARKET TREND

The challenges of of a hot real estate market

The Impact of Rising Prices on Home Appraisals | Keeping Current Matters

If you are in the process of selling your home, make sure you realize the major challenge a hot real estate market creates.

Each house must be sold twice; once to a buyer and a second time to an appraiser who represents the bank that will grant the purchaser a mortgage to buy the home (unless it is an “all cash” purchase). In a real market with escalating prices, the second sale may be the more difficult. And a recent survey by Quicken Loans reveals that the gap between what a homeowner believes is the value of their home compared to an appraiser is widening.

Appraisal vs. Homeowner Value | Keeping Current Matters

This could lead to an increase in the percentage of real estate transactions being challenged by a ‘short’ appraisal (where the appraiser value is less than the contracted price of the home).

Bottom Line

Whether you are a buyer or a seller, you must be prepared for this possibility as it may result in a renegotiation of the price of the home.

About Ingrid Pasco

Ingrid is a results oriented Realtor offering her clients the best experience buying or selling a home. She always work in the best of their interests with a personal approach, respecting their goals, challenges and time frame desired for their home sale, home purchase, investment or relocation for a complete satisfaction. As a CDPE (short sale expert) and Global Property Specialist, Ingrid offers home sellers the highest marketing exposure by widely advertising their property from the smallest neighborhood perimeter to foreign countries in 20 languages. Her clients benefit from her outstanding real estate expertise and effective home value analysis to locate, negotiate, purchase a home at the right price or to sell one for the highest price in a timely manner. You will find that Ingrid is a valuable Realtor and partner engaged to your side to provide you outstanding services and results. Read her clients testimonials on her website or blog.

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