Appraisals Holding Up Home Sales
As I have mentioned before the new appraisal process is creating chaos. Luckily I am with bank in a depreciating market here in South Florida and we have our own list of appraisers that we have had relationships with. Others aren’t as luck since they have to order through the Appraisal Management Companies which I have been told the banks have an ownership interest in 80% of these companies. Again, this is what I am told so take it with a grain of salt however it is probably accurate.
“In the past month, we have suddenly been bombarded with many stories of, at the last moment, transactions falling apart because appraisals are coming in unrealistically low,” said National Association of Realtors Chief Economist Lawrence Yun. “As a result it opens up a new round of negotiations between a buyer and a seller or in many cases the buyer just steps away.”