OK, so there are many sources out there pointing to the fact that we are heading for a real estate recovery. Monthly inventory continues to decline, sales are going up, never before seen market conditions exist for first-time buyers, and multiple offers are becoming a regularity in many neighborhoods (out of seven pending homes in a Carmel, IN neighborhood, they all had multiple offers!).
However, due to new appraisal guidelines known as HVCC, we are seeing low appraisals on home sales. This is affecting up to 50% of sales for some lenders and real estate agents. It is getting so bad that appraisers are the ones setting home values, not the market-buyers and sellers. This is just the beginning of this problem and it will continue to get worse. If you are thinking of selling your home, consider getting an appraisal before it goes on the market so you have an expectation of what to see after you find a buyer. It is a mess!
