Gavin Edwards, Real Estate Pro in Bentonville, AR

Has any one had the experience witha house under contract not Appraising for the purchase price ?? Why do you think it happend ??

Asked by Gavin Edwards, Bentonville, AR Mon Jul 2, 2012

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Every Realtor has had that happen. There are so many reasons a house doesn't appraise for purchase price. This market is changing every day, and every appraisal is different, AND every appraiser is different. Here are a few reasons, but most certainly not a complete list....

1. When measured, the house had smaller square footage than originally thought.
2. House is unusual, and it's hard to find enough comparable sales.
3. Nothing has sold in the neighborhood in the past 6 months to a year.
4. The house is in poor condition or needs repairs, decreasing value.

But what it boils down to is.....the purchase price is over market value (at least according to that particular appraiser) at this time.

I'm so sorry for your trouble! I don't know if you are the buyer or seller, but either way it's not a good thing to happen.

Take care, and good luck!

Chris Payton
Coldwell Banker Harris McHaney & Faucette
479-601-6331
PaytonProperties.com
1 vote Thank Flag Link Mon Jul 2, 2012
Appraisers have all kinds of new instructions and in some situations, it is quite difficult to find
the necessary comps, either because nothing has sold recently, or too many of the sold properties
were foreclosures, sometimes the appraisers are not particularly familiar with the particular location.
So yes it can happen...... If and when you see the appraisal report and the properties compared to
it may make more sense....

It could also be that the property initially was listed to high..... not sure if you are a Realtor, buyer or seller, but yes it can happen, has happened and in today's market more often than before.

Sincerely yours,
Edith YourRealtor4Life & Chicago and Northern Illinois Expert
Working always in the very BEST interest of her clients, Buyers, Sellers and Investors alike....
Covering for @Properties the city of Chicago, all N and NW suburbs, the fine homes on the
North Shore, and many of the W and SW suburbs, and with her trusted Partner Agents all of
the US and worldwide properties. Edith speaks French, German, some Spanish and other.....
@Properties, 30 Green Bay Rd, Winnetka, Illinois 60093 ---- EdithDoesItRight@yahoo.com or EdithSellsHomes@gmail.com Check out my website at htttp://www.tinyurl.com/MeetEdithHere
get to know me better and learn about my experience, expertise, services available and letters of recommendation of former clients..... Also you can sign up on my site to search for properties in my expanded service area. HAVE THE MOST WONDERFUL DAY :)
1 vote Thank Flag Link Mon Jul 2, 2012
Too many forclosures that the appraiser has not taken in consideration, if the subdivision is flooded with forclosures, he needs to do what is called " blended appraisal" pulling comps from surrounding neighborhoods...but that being said! The appraisers are scared to bring prices up due to the fall out of 2008
1 vote Thank Flag Link Mon Jul 2, 2012
Because the appraiser was probably from a different area and didn't know our market.
0 votes Thank Flag Link Fri Feb 15, 2013
what area in nwa are you seeingf a confict in?
0 votes Thank Flag Link Mon Sep 10, 2012
well boys we all know this markets is on the up-swing and the only history we are going to be able to track is our own...........coffee anyone?
0 votes Thank Flag Link Mon Sep 10, 2012
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