Agents Say Appraisals Continue to Hamper Deals

May 31, 2011

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 survey.

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)