In the last episode of Seattle Real Estate Chat, Jim Reppond and I discuss what happens when an appraisal comes in low for a home purchase. Since appraised values are based on comps (recently closed homes), the data used to determine an appraised value is often “lagging” behind current home prices. Factor in bidding wars when prices may be escalated along with HVCC (regulations that do not allow lenders to select appraisers) and it’s not entirely uncommon to have an appraisal come in lower than the offer price.
Jim Reppond of Coldwell Banker Danforth and I host Seattle Real Estate Chat every Tuesday morning at 10:00 am Seattle time via a Google Hangout. You can join us at www.seattlerechat.com or on Twitter @SeattleREchat where we discuss topics surrounding the greater Seattle real estate market.