The asking price of the home was $245,000, the seller and buyer agreed to a contract price of $214,000 pending the appraisal. The appraised value of the home came in at $181,000 a 33,000 dollar difference and now the buyer and seller are back in negotiations over the sales price.
The buyer and seller came to an agreement to split the difference between the contract price and the appraised value for a purchase price of $197,500. At this point the buyer was thrilled to buy the home for $16,500 less than originally agreed, and the seller was delighted to sell above appraised value.
The current under value we are seeing from appraisals is due to appraisers not understanding the demand we currently have for homes in a particular price range for the area. There is no doubt that the sale of this home will increase the current market values in the area, and stand out as the new standard for property value.
Are we Currently in a Sellers Real Estate Market? Only supply and demand will determine that in the coming months.
Bev Dudley, Realtor
Fleur de Lis Realty