Many parts of the country are experiencing problems with appraisals coming in for contracted purchase price.

Asked by Investor, 36542 Mon Aug 24, 2009

Has this been a problem in the Gulf Shores area as it relates to closings of sales in the condo market.

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6
Dottie Studt, , Gulf Shores, AL
Thu Aug 27, 2009
Yes, there are some many foreclosures, short sales that it is affecting the appraisals...
1 vote
David & Angie…, Agent, Gulf Shores, AL
Thu Feb 12, 2015
The Gulf Shores/Orange Beach market can be a challenge for appraisers. Appraisers typically explore the comps in the building or surrounding area and determine the fair market value for the unit compared to those comparables. Seems simple enough as long as the market is stable; however, as appraiser usually doesn't take into account a rising or falling market, so he/she may not be able to appraise a property to meet the rising selling prices or desirability of the building.

For this reason, if an appraiser is able to justify the contract price, they will typically appraise the property at that value since fair market value is what a buyer is willing to pay for the property.
0 votes
Karen Peyton, Agent, Chandler, AZ
Mon Aug 26, 2013
I don't see a problem. An appraisal at the contracted price usually means the parties are happy and will continue with the sale.
0 votes
Joseph Roraff, Agent, Onalaska, WI
Mon Aug 26, 2013
How would that be a problem? I would think it would be okay as long as it is not less than purchase price.
0 votes
Yep, that is true. Its not a problem unless its lower.
Flag Mon Aug 26, 2013
Lydia Franz, Agent, Gulf Shores, AL
Mon Aug 26, 2013
Its not really a problem if it matches the contract purchase price, only if it is lower than the contract price.
0 votes
Dottie Studt, , Gulf Shores, AL
Fri Dec 18, 2009
Yes there have been problems.
0 votes
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