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How have your appraisals been since the pandemic?

Paloma523
Established Member

How have your appraisals been since the pandemic?

The home we're purchasing was listed at $600k, I knew going into it that it wasn't worth that price at the time so I offered $20k under. We settled on that price, but I was nervous because at the time (August), the comps in the area were selling for just under the purchase price. I've been tracking home sales and listings and as of today, the average sale price has actually increased to $600k and up, so I'm hoping the appraisal works out to my advantage. (It's scheduled for tomorrow at 4pm.)

 

For those who have purchased over the last 18 months or so, how have the homes you've purchased matched up in terms of purchase price versus appraisal?

15 REPLIES 15
Kenstat
Member

Re: How have your appraisals been since the pandemic?

How did your appraisal come in compared to your offer?

I know this will vary by market, but hopefully a few people can add their data so we all have one additional thing to worry about.

 

My appraisal is due on Sept 15th. I'm just a little worried as I did not put an appraisal contingency in my offer and I don't want to reduce my furniture dollars to cover the diffrence.

Message 2 of 16
4sallypat
Established Contributor

Re: How have your appraisals been since the pandemic?

Interesting - what region of the US are you located ?

I'd love to offer lower than asking...

 

In my area (Southern California - Los Angeles & San Bernardino counties) we are paying way over asking.

 

We have been putting in offers for over 5 months and 2 were countered to go even higher than what we can afford (10-15%).

 

Appraisals have been higher due to the past 18 months of demand, but the market is starting to slow a bit.

Nothing like what you are experiencing.

 

Keep us informed ?

 

Message 3 of 16
brk1971
Regular Contributor

Re: How have your appraisals been since the pandemic?

My purchase was new construction, so comps are always an issue...  The comps lag behind the current sale prices.  In my case, I contracted for the spec home in October, and was very concerned about appraisal until about February or so. The market was just taking off. My appraisal was mid-March for my late March close, and the apprasial came in higher ($310k) than my contract price ($298k).

As a comparison, about a block away from me, the same house (same model, approximate lot size, elevation, etc.) was closed as new construction in late April for $304k, and the new owner was military who never even got a chance to move in before being relocated. That very house is pending right now (closing next week) for $390k. Appraised fine says the soon to be new neighbors.

While obviously location and house specific, I don't think appraisals are coming in low at present. The market is still too hot. (Here in San Antonio anyway.)

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Message 4 of 16
Paloma523
Established Member

Re: How have your appraisals been since the pandemic?

@Kenstat we find out tomorrow how the house appraised.  

 

 

Message 5 of 16
ShanetheMortgageMan
Super Contributor

Re: How have your appraisals been since the pandemic?

Surprisingly only have had a couple come in significantly under value since the beginning of the pandemic.  One was a suburb of Dallas where the value came in nearly $100k under asking (didn't matter, had a huge down payment anyway) & the other was one in Utah that came in $50k under value (also didn't matter, was putting way more down).  Had several more where value was missed by $1-5k but that is somewhat routine even before the pandemic.

 

What has really changed in 2021 is the amount of time it takes to get appraisals done.  5-7 days was never a problem, but those same areas are quoting 10-14 days and to get it done in 5-7 days often an additional rush fee has to be paid.  In more remote areas, or where there is a lack of appraisers, up to a month isn't uncommon.  Even had one quoted 6 weeks in central Washington State (Pacific Northwest has been particularly bad with turntimes).

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Message 6 of 16
Paloma523
Established Member

Re: How have your appraisals been since the pandemic?

@4sallypat I'm in NY, BUT the only saving grace that allowed us to offer under asking price was that this is a FSBO sale. 

Message 7 of 16
Paloma523
Established Member

Re: How have your appraisals been since the pandemic?

Update! Our house appraised at purchase price!

Message 8 of 16
AnalogKid
Established Member

Re: How have your appraisals been since the pandemic?

I'm sorry, but buyers need to learn a lesson here. If your contract doesn't contain the following, you get what you deserve.

1. Inspection clause. Who in their right mind buys anything, especially the largest asset in your lifetime, without an inspection?

2. Appraisal clause. Who in their right mind would let the price be set by some "120 hour online" course "professional" without some protection.

3. Financing clause. Obvious.

 

Buyers are their own worst enemy sometimes. It's not the only house built. You may miss out on it, so what, another will come along. It just baffles me that people will pay tens of thousands of dollars over the determined value of an asset. 

Message 9 of 16
4sallypat
Established Contributor

Re: How have your appraisals been since the pandemic?


@AnalogKid wrote:

I'm sorry, but buyers need to learn a lesson here. If your contract doesn't contain the following, you get what you deserve.

1. Inspection clause. Who in their right mind buys anything, especially the largest asset in your lifetime, without an inspection?

2. Appraisal clause. Who in their right mind would let the price be set by some "120 hour online" course "professional" without some protection.

3. Financing clause. Obvious.

 

Buyers are their own worst enemy sometimes. It's not the only house built. You may miss out on it, so what, another will come along. It just baffles me that people will pay tens of thousands of dollars over the determined value of an asset. 


Agreed, but in our market, we are paying $10,000 over appraised value just to be competitive...

Message 10 of 16
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