Appraisal Issues Blowing up Deals???

A good article in the post about appraisal issues in today’s market – It is a good reminder as to why utilizing a real estate broker who can help overcome appraisal issues (such as Cherry Point Properties) can be of great benefit : :

Colorado’s hot real estate market has put some buyers in the prickly position of having to decide just how much they’re willing to pay for a property — even if it means paying more than it’s currently worth.

Bidding wars not seen here since the turn of the millennium are slamming into once-sluggish sales that depressed prices long enough that current appraisals sometimes can’t catch up.

That leaves some wondering whether a new mini-bubble is inadvertently being created, putting extra pressure on appraisers who’ve already been beaten down with part of the blame for the prior housing bubble.

“If buyers are overzealous in purchasing, it’s very quickly an issue,” said Lisa Hier, owner of Hier Appraisals in Castle Rock. “We don’t want to re-create another bubble. I don’t want to blow up a purchase, but if you’re talking about a $25,000 difference, that’s huge and something’s off.”

And it’s happening. The timing of cheap mortgages, coupled with a slim inventory that can’t meet demand, has created even more of a seller’s market, since many homes have three or more bids to choose from.

Read more: Colorado housing market: Buyers caught in price squeeze – The Denver Post http://www.denverpost.com/breakingnews/ci_23475772/colorado-housing-market-buyers-caught-price-squeeze#ixzz2WUaEwb8a
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