What do Buyers and Sellers Actually Need to Know about the Appraisal Gap....
It's economy 101 - when supply is low and demand is high, prices naturally rise. That's what's happening in today's housing market. Home prices are appreciating at near-historic rates, and that, my friends, is creating some challenges when it comes to the homes appraisal.
In recent months, it's become increasingly common for the appraisal to come in below the contract sales price.
The chief appraiser for Corelogic, explains it like this: "Recently we observed Buyers paying prices above the list price, and higher than the market data available to the appraisers can support. This difference is know as the Appraisal Gap..."
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