What you think, what the appraiser thinks

There are still a couple of neighborhoods in Manatee and Sarasota counties where there have not been a lot of sales in the past year or two years.

This leads to a difficult problem.

Appraisals are largely based on comparable sales. So if there are no comparable sales in the neighborhood the comparable may come from other neighborhoods. Which often makes the appraisals more difficult.

And with new banking regulations the appraiser may not even be from the county where the appraisal is being done.

What that means for the seller is even though they think the price of their home is reasonable and the buyer agrees to buy it at that price, the deal may stopped in its tracks by an appraisal.

This means real estate agents have to be constantly updating sellers on what their listing is worth. If they asking price does not reflect true market value the homeowner may be in for a shock when the appraisal comes in.

If home is getting a mortgage an appraisal is ordered to determine the value for the lender. If the value is less the agreed price, well, the lender will probably deny the loan.

It is happening more and more often in this market. It is a frustrating situation for everyone and on the other it is reality check for homeowners on how far values have fallen.

All the best
Greg Owens PA
Keller Williams Realty On The Water
941.932.6343
greg@teamworksfla.com