I can handle the long days, full voicemail box, forty different phone conversations a day, fifty different client text conversations a day, back-to-back appointments, multiple offer situations (buyers and sellers), rescissions, addendums, bumps, delayed closings here and there, trouble shooting, problem solving, but then come the low appraisals representing Sellers, representing Buyers, and all when I had four offers for the property in question or competed with three other buyers agents for the property in question within hours of it going on the market.
My Sellers ask, “But isn’t the market what a Buyer is willing to pay and a Seller is willing to sell for?”. One would think, but when financing, it doesn’t go that way. A cash buyer can do as they please, but the lenders providing the capital to purchase are not wanting to find themselves in a position of owning real estate again, getting it back…being homeowners if you will. It seems lenders are taking proactive steps to intentionally challenge appraisals so we do not find ourselves in a similar situation of the crash of September 2008. They’re leaning heavily to appraisals to ensure that they are not going to be upside down if they need to recover their investment should they have to sell the house because the Buyer defaults.
Speaking with Bob, an appraiser today after he started a text conversation with me, “Hi Bernadette. Not to alarm you, but do you have any comps you want me to consider for 1234 ABC Street and by-the-way, the lender put a RUSH on this so I need it now.”, he explains how all appraisers are being scrutinized for a job they are good at and have to approach every appraisal as if it is being challenged. Bob laughs with me as I joked back saying, “Bob, I forgot to schedule time for a low appraisal dissertation today.”
More buyers than there are homes for sale, supply being less than demand…the things that drive home prices halted by low appraisals are stressful for all involved. The Buyer has already prepared themselves for the agreed-upon price and has been moving forward with their plans to close and so has the Seller. It is key in this market to be prepared. Be prepared by having realistic expectations, be positioned properly on the market, do not get over zealous, consider as if you were a Buyer, consider heavily the market analysis, and provide reasonable value to the presence of the sellers’ market and multiple offer situation. I have become a believer in the Seller being present to tell the appraiser about his home as he knows it best, be prepared with a comprehensive list of upgrades, and work as a team with your Realtor in getting the job done.