One of the more frustrating aspects of being a mortgage broker is having a client’s home appraised much less than they expected. In too many cases client’s are expecting / remembering sales data from last year. The real estate market has changed and the escalating prices and bidding frenzies have been replaced with a more stable market, albeit at the expense of home values.
It will be interesting to see how the market evolves in the next six months, will the market level off, spike or continue to adjust downward? One thing is certain and that’s uncertainty. Many lenders are insisting on appraisals that are recent, sometimes no older than 30 days, especially for high end homes.
If you or your clients are thinking of refinancing or purchasing it’s never been more import to really be knowledgable about market conditions in your area.