Appraisals Scuttling Home Sales

Some people interested in selling their home have had difficulty doing so, not because they haven’t been able to find a buyer, but because the bank’s appraiser says the home isn’t worth what the home was selling for.

A number of recent reports have highlighted the difficulty many buyers and sellers are having with appraisals in the current real estate market.

With foreclosures being a major factor in some areas, along with lower home prices, appraisers are sometimes coming up with values lower than the selling price. In those cases, either the buyer has to put more money down, or the seller has to drop their price. If neither side is willing to budge, then they either need to find another appraiser or forget the deal completely.

The issue is causing major issues in some markets. Earlier this month, real estate agents in Detroit told the Free Press that appraisals might be derailing up to 40 percent of their sales.

We’d love to know if you’ve run into a problem with an appraisal affecting a sale you’re involved with, either as a buyer, a seller, or even an agent? Use the comment link below to tell us your experience.