Demand is way up and inventory is way down. That means buyers are all chomping at the bit to bid on the few houses that are on the market. “I’ve had clients this spring who have offered on properties without even seeing them,” explained realtor Kerrianne Ciccone.
In the most popular neighborhoods, sellers are routinely getting multiple offers above the asking price. While that may sound like great news for Ciccone’s clients like Neil Maniar, it can create some problems. “You never quite know what you are going to get into when you sell your house,” Maniar said.
One of the biggest unknowns in the current market is the appraisal. If a bidding war pushes the price above asking, the appraisal may come in too low.
Appraisers use recent sales to set the value of a home, but prices have been rising so fast that sales from a few months ago are out of step with current rates. That, according to Boston realtor P.T. Vineburgh, can put both buyer and seller back to square one. “It could completely create an inability for someone to secure financing,” he said. “Our company has definitely lost deals,” he added.
New rules to avoid another mortgage meltdown are also causing problems. Banks can no longer hire their own appraisers and that means appraisers are sometimes sent to unfamiliar territory. Vineburgh says he almost lost a deal because an appraiser from the Cape was sent to evaluate a condo in the Back Bay.
“He valued the parking space at like $20, 000,” he said. You may recall a parking space in that neighborhood recently sold for $560,000.
If you are a buyer and your appraisal comes in low, here are a few things to try.
Bedford New York Real Estate | Bedford NY Homes by Robert Paul Realtor » Blog Archive » Hot Real Estate Market Causes Unexpected Glitch For Buyers, Sellers | Cross River Real Estate.