Ponte Vedra Beach real estate-Appraisals Rule (or Ruin) the Day

In the Ponte Vedra Beach real estate market  appraisals can rule, or ruin, the day.  I’ve come to the conclusion that if you believe there are no appraisal problems you just haven’t been involved in enough real estate transactions.  Fair market value is where a ready, willing and able buyer and seller both come together…right?  Not these days.

Appreciation in the Ponte Vedra Beach real estate market is dependent upon whether the appraiser feels the home is worth the sales price.  Then the underwriter sometimes works to poke holes in the appraisal even though the appraiser is chosen by the bank.

So some buyers are going under contract on homes, putting out money for the inspections, then finding out that the bank is not going to loan the money for the home based on the appraisal.

When appraisals on Ponte Vedra Beach homes for sale come in low it is a very emotional experience for all.  The seller usually gets angry that they have a buyer and a contract yet someone else is not letting the transaction go through as planned.  The buyer is mad because if the seller is not willing to come down, they either lose the home or have to come up with extra cash out of pocket to cover the difference in the appraisal price of the home and the contract sales price.

I had a recent appraisal where the home appraised low.  In this appraisal an eleven month old comp was used and NO market appreciation was applied.  As we all know there has been appreciation in the past year.  Market increases are being controlled by the banks.  As a result, more homeowners are staying underwater.

Just because a buyer is willing to pay a certain price for your home that you are willing to sell it for doesn’t make it a done deal.  In the Ponte Vedra Beach real estate market the appraisal could ruin your deal.  While it’s not always enough, it’s important that careful attention be paid to pricing to minimize this risk.