Sunday, January 27, 2013

Housing market’s latest obstacle: Appraisals

MarketWatch -  What’s that $1 million house really worth?

Depends who you ask.

 To determine the value of a property, appraisers are supposed to review purchase prices of similar, nearby homes that sold in the past six months. But when a property is much pricier than others in the neighborhood, it can be hard to find similar examples close by. As a result, their asking prices are often out of whack with values that are later determined by appraisals........

On average, one-third of real-estate agents said the appraisal process resulted in buyers and sellers delaying or canceling contracts or renegotiating to a lower sales price last year, according to a National Association of Realtors’ monthly survey of roughly 3,000 agents. That’s up from less than 10% in 2008. Experts say this figure could grow going forward as the luxury real-estate market continues to surge. Appraisals can undervalue properties when markets are rising because they look backward at lower valuations, says Mark Fleming, chief economist at CoreLogic, a real-estate analytics company. Some appraisers may not adjust for the discrepancy, he says....READ MORE>>

Westchester NY Real Estate,  Chappaqua Real Estate, Pleasantville Real Estate

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