Appraisals Too Low For Orlando Buyers
In Orlando, the web site for WESH tells us the appraisal issue is starting to cool down the market. "There's a bump in the road for Central Florida's booming real estate market. A local realtor says 70 percent of buyers can't close on a home because of appraisal troubles."
It was bound to happen. "The homes are being appraised for less than the selling price. Banks grant mortgages based on a home's appraised value, so if you don't have extra money to make up the difference, the deal falls through."
One appraiser wants to change the rules. "The appraised value of a home is based on comparable sales. Banks allow appraisers to consider only closed sales, which could be months old. Appraiser Walter Carpenter said it would help if appraisers could also consider the prices of homes under contract."
"'At least with a contract, you may be fortunate enough to find someone who has agreed on a price within the last 30 days or 45 days,' he said."