• Skip to main navigation
  • Skip to content
  • Skip to primary sidebar
  • Skip to footer

Realty Solutions Group

Service Beyond Expectations

SearchClose

What To Expect as Appraisal Gaps Grow

What To Expect as Appraisal Gaps Grow | Simplifying the Market

In today’s real estate market, low inventory and high demand are driving up home prices. As many as 54% of homes are getting offers over the listing price, based on the latest Realtors Confidence Index from the National Association of Realtors (NAR). Shawn Telford, Chief Appraiser at CoreLogic, elaborates:

“The frequency of buyers being willing to pay more than the market data supports is increasing.”

While this is great news for today’s sellers, it can be tricky to navigate if the price of your contract doesn’t match up with the appraisal for the house. It’s called an appraisal gap, and it’s happening more in today’s market than the norm.

According to recent data from CoreLogic, 19% of homes had their appraised value come in below the contract price in April of this year. That’s more than double the percentage in each of the two previous Aprils.

The chart below uses the latest insights from NAR’s 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.What To Expect as Appraisal Gaps Grow | Simplifying the MarketIf an appraisal comes in below the contract price, the buyer’s lender won’t loan them more than the house’s appraised value. That means there’s going to be a gap between the amount of loan the buyer can secure and the contract price on the house.

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’t want to risk losing the home. That’s why it’s common for sellers to ask the buyer to make up the difference themselves in today’s competitive market.

Bottom Line

Whether you’re buying or selling, let’s connect so you have an ally throughout the process to help you navigate the unexpected, including appraisal gaps.

Content previously posted on Keeping Current Matters

Table of Contents

  • Bottom Line

Posted in: Buying Myths, Down Payments, For Buyers, For Sellers, Move-Up Buyers, Pricing, Selling Myths

Post navigation

« Save Time and Effort by Selling with an Agent
What Do Experts See on the Horizon for the Second Half of the Year? »
Search for:

Recent Posts

  • Bright Days Are Ahead When You Move Up This Summer [INFOGRAPHIC] May 27, 2022
  • Why Summer Is a Great Time To Buy a Vacation Home May 26, 2022
  • How Buying or Selling a Home Benefits the Economy and Your Community May 25, 2022
  • Sellers Have an Opportunity with Today’s Home Prices May 24, 2022
  • Sellers Have an Opportunity as Home Prices Re-Accelerate May 24, 2022

Recent Comments

    Archives

    • May 2022
    • April 2022
    • March 2022
    • February 2022
    • January 2022
    • December 2021
    • November 2021
    • October 2021
    • September 2021
    • August 2021
    • July 2021
    • June 2021
    • May 2021
    • April 2021
    • March 2021
    • February 2021
    • January 2021
    • March 2020
    • February 2020
    • January 2020
    • December 2019
    • November 2019
    • October 2019
    • September 2019
    • August 2019
    • March 2019
    • February 2019
    • January 2019
    • December 2018
    • November 2018
    • October 2018
    • July 2018
    • June 2018
    • May 2018
    • April 2018
    • March 2018
    • February 2018
    • January 2018
    • December 2017
    • November 2017
    • October 2017
    • September 2017
    • August 2017
    • July 2017
    • June 2017
    • May 2017
    • April 2017
    • March 2017
    • February 2017
    • January 2017
    • December 2016
    • February 2016
    • 0

    Categories

    • Baby Boomers
    • Buying Myths
    • Demographics
    • Distressed Properties
    • Down Payments
    • First Time Home Buyers
    • For Buyers
    • For Sellers
    • Foreclosures
    • FSBOs
    • Gen Z
    • Generation X
    • Holidays
    • Housing Market Updates
    • Infographics
    • Interest Rates
    • Luxury Market
    • Millennials
    • Move-Up Buyers
    • New Construction
    • Pricing
    • Rent vs. Buy
    • Selling Myths
    • Senior Market
    • Short Sales
    • Time-sensitive
    • Uncategorized

    Meta

    • Log in
    • Entries feed
    • Comments feed
    • WordPress.org
    Search for:

    Meta

    • Log in
    • Entries feed
    • Comments feed
    • WordPress.org

    Go to mobile version