Appraisals are low

There’s an interesting story in the Minneapolis Star tribune this week (New rules hamper home sales). It’s about a couple who had all but sold they house; two days before closing the appraisal came in at more than $200,000 less than the agreed upon house price. The buyers backed off the sale.

There’s a new federal mandate in place meant to buffer lenders from appraisers. Some say it’s a safety catch; others claim it’s too stringent and making it even tougher to buy or sell a home. One real estate agent noted that in ten years as an agent, he had only one property come in at a too low price; in the last six months he’s had 5.

From the buyer’s perspective this means be aware of the heightened importance of appraisals. And work with an exclusive buyer agent to make sure you have someone in your corner!

Submitted by Mary Rugani
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