How Is the Market Affecting the Appraisals of Homes?

We continue to be in a seller’s market, which is affecting how appraisals come in for homes under contract. I’ll explain everything in today’s video.
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Today I wanted to talk to you about what’s going on with appraisals in the current market. In our last video, we gave you a snapshot of what the market currently looks like from a supply and demand perspective. Currently in our market, we have high demand and a low supply of homes, which is causing home prices to increase. So how is this affecting appraisals for the sellers that we work with? We’ve had more instances this year than in recent memory where we get a home under contract for a certain value, and the appraisal comes in lower than that value. This is a problem. Why are we seeing lower appraisals? Appraisers are looking back over the last three to six months of sales in the area, comparing similar homes to the seller’s, and coming up with their opinion of the value of the home based on those factors, as well as any improvements or updates done to the home.

Currently in our market we have a high demand and a low supply of homes.

In my opinion, the true market value of a home is what the seller and buyer agree on, but the banks have to protect themselves. Because of this, we’re seeing these low appraisals. I still continue to encourage sellers to list their home at a price that is a little higher than the homes that sold recently in the area, especially in this current market. If you find yourself in that situation where the home appraisal is lower than the purchase price, you have a few options to take care of that problem. You can reduce the price down to the appraised value, the buyer can pay that difference in cash, or you can meet somewhere in the middle. Some buyers aren’t willing to pay the extra money, and the low appraisal can kill your deal. If you get a cash offer for your home, it might be worth it to really consider taking that deal. Most cash buyers don’t spend the extra money on the appraisal, so you don’t have to worry about it. If you have any other questions about this topic or there is anything we can do for you, a friend, or a coworker, give us a call. We’d be happy to help!

What Do the Latest Numbers Say About Our Athens Market?

With how our market’s been acting lately, there’s no better time to be a seller in one of the median price points.
Looking to sell a home in Athens, Georgia? Click here for a Home Price  Evaluation
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As I’m sure you’ve probably heard, the market has been going gangbusters lately, and I want to share some numbers to help you get a sense of what’s happening. When you hear news about the market going crazy and prices rising, that’s usually referring to what’s happening in the median price points. Homes in higher price points aren’t selling as quickly, however, and prices at those higher price points aren’t rising as dramatically either. This is because demand isn’t the same for higher-end homes. These latest numbers, then, represent the activity in our market’s median price point. In East Athens, there are only 31 single-family homes currently for sale under $200,000, which is a little over one month’s supply of inventory. In the last 12 months, 293 homes have sold in this area. With supply this low and demand still high, it’s naturally caused prices to rise. In West Athens, there are only 27 single-family homes for sale under $200,000. These homes encompass all age ranges and sizes, too—some are new, some are old, some are large, and some are small. In the last 12 months, 238 homes have sold in this area.

Now might be the best time ever to sell your home in the median price points.

In Oconee County, there are only 11 single-family homes for sale under $200,000. In the last 12 months, 84 homes have sold in this area. I believe there would be more sales in this area if there were more homes on the market. In addition to making prices rise, this low inventory is almost stifling sales. If you’re thinking about selling your house in this price range, now’s the best time to do it in the last 10 years—maybe even ever. If you’re a buyer, you have to be ready to act fast and make a strong offer if you see something you like. With inventory as it is, many homes are receiving multiple bids and flying off the shelves quickly. Times may be tough, but if prices continue to rise, you’re much better off acting now. If you have any questions or are interested in buying or selling a home, don’t hesitate to give me a call or shoot me an email. I’d be glad to help you.