UNCATEGORIZED

Appraisals hamper 25 percent of home transactions

Sep 16, 2013, 9:16 AM | Updated: Mar 4, 2016, 5:52 am

The recovering housing market is welcomed by many, but swift increases in home prices can make the job of an appraiser much more difficult.

Jonathan Miller, president of the Miller Samuel Real Estate Appraisers, says appraisers are facing an increasing number of accusations from buyers and brokers that valuations are coming in too low and under the agreed upon sales price in housing markets where prices have jumped rapidly in recent months.

Some neighborhoods have seen prices rise 25 percent in the past year. The appraisals, however, haven’t caught up to reflect the rise in prices, brokers say.
About a quarter of real estate transactions have had “some sort of problem with appraisals,” said Jed Smith, managing director of quantitative research at the National Association of Realtors.

“In a rising market, appraisals tend to lag the market because appraisals are looking backward and the market is looking forward,” Smith told Investor’s Business Daily.

Acccording to Miller, most property valuations are valid, but a big contributor to the problem is due to markets that are moving too quickly and “inconsistently.” The markets that are seeing particularly scarce inventories and bidding wars may see valuations that can change “within a couple of weeks,” Miller said.

A low appraisal can prompt buyers to try to renegotiate a lower sales price or force a buyer who is trying to get financing to find a way to come up with more money in order to proceed with the sale.

Uncategorized

kent trooper shot...

Kate Stone

Man faces multiple charges after WSP trooper shooting in Kent

A man accused of shooting a Washington State Patrol trooper multiple times in Kent last Friday has been charged.

1 month ago

Oregon Emergency Landing - (Elizabeth Le via AP)...

KIRO 7 News Staff

‘Everyone was eerily calm,’ recalls passenger aboard ill-fated Alaska Airlines flight

Terror in the skies: A Vancouver, Washington, woman shares the harrowing moments after an airplane blowout over Portland.

3 months ago

Photo: SPD vehicle...

KIRO 7 News Staff

Two men shot at bus stop in North Seattle near Northgate

Two men were shot at a bus stop along Aurora Avenue Wednesday, according to the Seattle Police Department.

5 months ago

Manuel Ellis arrest, Tacoma police officers...

Associated Press

Prosecutors focus on video evidence in trial of Washington officers charged in Manny Ellis’ death

A cellphone video of the 2020 fatal arrest of Manny Ellis shows the Black man on the ground with his hands in the air in surrender

6 months ago

...

No Author

EXPIRED: Win tickets to see Stokley at EQC!

KIRO Newsradio is giving you a chance to win two tickets to see Stokley at the Emerald Queen Casino on Saturday, November 11, 2023!

6 months ago

(File photo)...

L.B. Gilbert

NLRB files complaint against Amazon for unlawful confidentiality agreement

A new complaint from the National Labor Relations Board (NLRB ) is accusing Amazon of requiring some corporate employees to sign an unlawful confidentiality agreement. The complaint states Amazon had required a former employee from its drone project, Amazon Prime Air, to sign an agreement that forbade discussion of information regarding Amazon, whether or not […]

7 months ago

Appraisals hamper 25 percent of home transactions