Buyers, sellers, and agents should be prepared for extra costs and delays as cautious mortgage lenders order stricter reviews. This article comes from MSN Real Estate…. I have seen first hand what this article is talking about with some of my own investments. We had a home this last winter that appraised for $5,000 under the approved sales price. The buyers were ready to close (the appraisal was all that was left)….and when it came back low it threw everything into disarray…..

Here in as excerpt from the article;

“Any time you have a market in transition; appraisals aren’t going to keep up because the appraisal is based on historical data…… Inadequate “comps” can present problems as well. (“Comps” are recent sales of nearby homes that are similar, or comparable, to the home that’s the subject of the appraisal.) The mortgage lender may deem the comps inadequate if the homes were too far away or were sold in such nontraditional circumstances as a short sale or foreclosure or if the sales occurred too long ago. If the comps aren’t sufficient, the lender may order a review or second home appraisal to verify that they were chosen correctly.

Read the whole article and as always…please send your comments and tell us what you think.

MSN Real Eastate Home appraisals

This entry was posted on Thursday, June 24th, 2010 at 3:49 pm and is filed under In the Media, Updates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.