This is a new video I found on YouTube that I wanted to share. YES, it’s from an Agent in Alexandria, VA. However, I totally agree with the advice “Rot” is offering – to remain extremely flexbible during the home sales Appraisal process. Some homes don’t appraise for the Purchase Price. YES, there are still some homes NOT appraising for the Purchase Contract in Greater Baton Rouge…this just happened this weekend on a report I completed. The major reason this does happen is because the home was listed above obvious, well established market support without any recent sales to show or prove it’s a hot sellers market and the Appraiser should adjust upward 5% based on such comps. Appraiser must use market proof in order to make increasing markets adjustments. If there were any seller’s markets in Greater Baton Rouge righ now in September 2012, they might be in Areas 52 and 53 along Highland Rd and not far from Perkins Rowe.
From YouTube: “What is an appraisal and why should we care? Appraisal are used by lending institution/banks to determine value. They are mostly used when your trying to buy or refinance a home. They are done by third party vendor to unsure there’s no outside influence and the appraisal value is a true and honest number. We re talking about appraisals because in the DC metro market we are seeing a shift in how these appraisals are affecting the overall market. The current DC real estate market is very low in active listings. Buyers are forced to compete for homes and that competition drives up the prices. The problem that we are seeing is the appraisals aren’t reflecting the shift in the overall market thus we are seeing low appraisal more and more. Sellers should be aware that just because you receive price over your list price, your sale and price are contingent on the appraisal. Buyers should also be mindful to keep their appraisal contingencies in the contract and know that even if they have to make a higher offer they are protected by this appraisal.”
See on www.youtube.com