{"id":1823,"date":"2021-06-29T15:25:56","date_gmt":"2021-06-29T15:25:56","guid":{"rendered":"https:\/\/phphouses.com\/blog\/?p=1823"},"modified":"2021-06-29T15:25:56","modified_gmt":"2021-06-29T15:25:56","slug":"expect-appraisal-gaps-grow","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/expect-appraisal-gaps-grow\/","title":{"rendered":"What To Expect as Appraisal Gaps Grow"},"content":{"rendered":"
\"\"

What To Expect as Appraisal Gaps Grow<\/p><\/div>\n

In today\u2019s real estate market, low inventory and high demand are driving up home prices. As many as\u00a054%<\/a>\u00a0of homes are getting offers over the listing price, based on the latest\u00a0Realtors Confidence Index<\/a>\u00a0from the\u00a0National Association of Realtors<\/em>\u00a0(NAR). Shawn Telford,\u00a0Chief Appraiser<\/em>\u00a0at\u00a0CoreLogic<\/em>,\u00a0elaborates<\/a>:<\/p>\n

\u201cThe frequency of buyers being willing to pay more than the market data supports is increasing.\u201d<\/em><\/strong><\/p><\/blockquote>\n

While this is great news for today\u2019s sellers, it can be tricky to navigate if the price of your contract doesn\u2019t match up with the\u00a0appraisal<\/a>\u00a0for the house. It\u2019s called an\u00a0appraisal gap<\/em><\/strong>, and it\u2019s happening more in today\u2019s market than the norm.<\/p>\n

According to recent data from\u00a0CoreLogic<\/em>,\u00a019%<\/strong>\u00a0of homes had their appraised value come in below the contract price in April of this year. That\u2019s\u00a0more than double<\/strong>\u00a0the percentage in each of the two previous Aprils.<\/p>\n

The chart below uses the latest insights from NAR\u2019s Realtors Confidence Index to showcase how often an issue with an appraisal slowed or stalled the momentum of a house sale in May of this year compared to May of last year.<\/p>\n

\"\"

How Appraisal Issues Impact Sales<\/p><\/div>\n

If an appraisal comes in below the contract price, the buyer\u2019s lender won\u2019t loan them more than the house\u2019s appraised value. That means there\u2019s going to be a gap between the amount of loan the buyer can secure and the contract price on the house.<\/p>\n

In this situation, both the buyer and seller have a vested interest in making sure the sale moves forward with little to no delay. The seller will want to make sure the deal closes, and the buyer won\u2019t want to risk losing the home. That\u2019s why it\u2019s common for sellers to ask the buyer to make up the difference themselves in today\u2019s competitive market.<\/p>\n

Bottom Line<\/strong><\/h3>\n

Whether you\u2019re\u00a0buying<\/a>\u00a0or\u00a0selling<\/a>, let\u2019s connect so you have an\u00a0ally<\/a>\u00a0throughout the process to help you navigate the unexpected, including appraisal gaps.<\/p>\n

Contact us:<\/strong>
\nPHP Houses
\n142 W Lakeview Ave
\nUnit 1030
\nLake Mary, FL 32746
\nPh:\u00a0(407) 519-0719<\/span>
\nFax:\u00a0(407) 205-1951<\/span>
\nemail:\u00a0info@phphouses.com<\/p>\n

Let\u2019s Connect:<\/strong>
\nFacebook<\/a>
\nLinkedin<\/a>
\nTwitter<\/a>
\nInstagram<\/a><\/p>\n

THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE<\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"

If an appraisal comes in below the contract price, the buyer\u2019s lender won\u2019t loan them more than the house\u2019s appraised value. That means there\u2019s going to be a gap between the amount of loan the buyer can secure and the contract price on the house. Finish Reading What To Expect as Appraisal Gaps Grow<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[69],"tags":[312,373,38,18,313,27,91,56,138,52,314,25,42,374,20,12,28,19,17],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1823"}],"collection":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/comments?post=1823"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1823\/revisions"}],"predecessor-version":[{"id":1826,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1823\/revisions\/1826"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=1823"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=1823"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=1823"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}