JACKSONVILLE BEACH, Fla. – May 16, 2013 – Are more home sales going through because appraisals are coming in at – or above – contract prices? A CNN story says they are.
Home sale transactions often collapsed during the housing bust because appraisals fell well below selling prices, and 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.
Source: CNNMoney.com (05/15/13) Christie, Les