Soaring Home Prices Rolling Appraisals, Upending Sales

 

Soaring Home Prices Roiling Appraisals, Upending Sales

In Aug., 13% of appraisals came in below a home’s contract price.

It was higher in May (19.7%), but is still up compared to sales early last year (7.3% in Jan. 2020).

The disparity underscores the risks buyers face in the current market, especially those stretching their dollars to win a bidding war.

 

Many buyers prepare for the possibility of a lower appraisal by making down payments of just 5% to 10% and holding their extra cash in case they need it to make up any difference should the appraisal fall below the sales price, says Phoenix-area Realtor Nicole Dudley.