Home Appraisals No Longer Derailing Sales

Home sale transactions often collapsed during the housing bust because appraisals fell well below selling prices. Low-ball appraisals made homes too costly for some buyers. However, appraisers now are valuing homes at or above their selling prices as residential prices rise and housing inventories narrow, according to National Association of Realtors chief economist Lawrence Yun. As an example, prices have swelled 15 percent over the past year in Jacksonville Beach, Fla., and agent Cara Ameer had an appraisal come in above the selling price on a two-bedroom townhouse. She sold the townhouse for $5,000 more than its $189,000 asking price. “It was FHA financing and [the FHA is] typically much more strict,” Ameer said. | Read More