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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