Fill The Appraisal Gap

You can view this in a video format Mike In Boca Minute 04 20 2022

I recently submitted an offer for a customer to purchase a home.

The customer is a solid buyer; however, the home buyer is getting a loan and is bidding against cash offers.

In order to be competitive, the potential buyer offered a cushion on the appraised value in order to entice the seller.

Unfortunately, the home buyer did not get the property; however, it was necessary in order to be considered, in my opinion.

A recent article highlighted this trend.

The article described “home appraisal gaps” as being common despite mortgage rates rising.

Thus, pushing prices above the appraised value.

Corelogic reported 16% of homes sold in January and February 2022 were for more than their appraised value.

Corelogic reports this is an increase from 15% of sold homes selling for above appraised value during 2021.

The historical norm is 7% above appraised value, according to Corelogic. 

The main reason seems to be low inventory with the National Association of Realtors reporting a new record of just 870,000 homes on the market in February 2022, which slightly beat out the old record set the month prior.

In a competitive market, it is important to work with a real estate professional who knows how to navigate through current housing market conditions in our area.


Michael Friedman

Broker-Associate, Realtor, CDPE eXp Realty

for more information view my Website

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