Agents Say Appraisals Continue to Hamper Deals

Low appraisals that come in below the purchase price
are still delaying closings or killing some sales contracts, real estate
professionals say in a survey from April.

One out of 10 real estate professionals–or 11 percent–say that low
appraisals are causing home sales contracts to fall through. An additional 10
percent say low appraisals are delaying closings, according to an April survey
by the National Association of REALTORS®. About the same number of real estate
professionals reported the problems with low appraisals in a March

About 14 percent of real estate
professionals reported that appraisals below the purchase price are requiring
extra negotiating in order to get the deal closed.

“Short sales and foreclosures are still priced too high by the
lenders, who do not believe the agents information concerning actual market
conditions,” said one real estate professional in the survey comments.

Source: “Appraisals Still Kill Home Sales,” (May 25, 2011)