Over 40 % of homes in Palm Beach County are currently under water with the mortgage balance being higher than the market value. It is more important than ever to start selling the properties that buyers want to buy! Unfortunately overly conservative banks and their appraisers are squashing these real estate transactions with lower and lower appraisals.
Recently I had a property under contract for $425,000 with a local doctor. It was only onÂ the market for six weeks, shown to three prospective buyers and two of them made offers. The second buyer's offerÂ came in as high as $405,000 and was rejected.
I became a little concerned after reviewing the most recent sales and prepared my seller and buyer that there could be an appraisal problem. Had it been justÂ four months earlier, I explained, weÂ would have had theÂ sales comparablesÂ to justify our contract price. More on this later.