With the market shifting, more appraisals are starting to come in below contract price. Tara explains why that's happening, what listing agents and buyer's agents can do to prepare, and how to best work with appraisers to protect your deals. Covers why appraisers must use recent comps, how to provide context to the appraiser, and how to prepare buyers for possible low appraisals.
Key takeaways
Appraisers rely on recent comparable sales, which may lag a fast-changing market.
Listing agents can provide relevant context, upgrades, and comparable data appropriately.
Buyer expectations should be set before the appraisal result arrives.
Common questions
Why do appraisals come in low?
Low appraisals can happen when contract prices move faster than closed comparable sales, property condition differs, or the strongest support for value is not available to the appraiser.
Can agents communicate with appraisers?
Agents can provide factual property information, upgrades, and comparable sales through appropriate channels without pressuring the appraiser to hit a value.
