Not recently in Georgetown. It has only happened to me once recently on a North Austin Property. As long as the Realtor does a market analysis and is able to locate comps in the area (which is exactly what the appraiser does), you are okay. It tends to happen more with rural properties in Georgetown and I am hearing some lender friends say it is happening more on refinances right now. We are in a Sellers market though so if the inventory remains tight we may see it more in late Spring and Summer. The supply and demand factor will definantly cause it. Best Regards, Laura Rosales - Realtor with Premiere Team Real Estate 512-771-5334
Appraisals coming in low on a purchase transaction are becoming more common throughout the Austin area. This is actually a good thing as it is a function of being in a market with increasing property value. If you look at the way HVCC has set up the appraisal process, the only way you can have an increase in property value is to have buyers paying above the appraised value.
As with most of the issues that we navigate in the real estate industry, it is simply a matter of us creating the correct buyer expectations. Buyers need to realize that an appraisal is base on historical data. In a competitive market like Austin, with its limited inventory and strong demand, if you are looking at a good property in a good area there will probably be multiple offers and the free market will decide what the real value of the property is at the time the purchase contract is accepted.
I think buyers just need to realize they may need to pay a premium above the historical value of a property to acquire a property that is highly desirable. Buyers should take solace in the fact that all indicators point to this trend continuing for the foreseeable future, so in reality they are not taking a loss on their purchase.
I know this is a frustuating issue inside of a particular transaction, but hopefully this will help to shed a positive light on this issue. We are very lucky to be in the strongest real estate market in the country.
Feel free to contact me if you have any questions. I work for a lender in Austin, Tx. (Nations Reliable Lending)