It’s no secret the the Puget Sound region has been experiencing a very hot real estate market… so hot in fact that it may be causing some home buyers to feel a little burned from competing with multiple offers as well as renters contending with rapidly rising rents. Recently KOMO 4 News shared that that Seattle currently has the nations hottest housing market. This is not only good news for those who are wanting to sell their homes, it’s also good news for home owners who may benefit from a refinance.
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.