I met the Appraiser at a property in our area this past week.  After I answered a couple of questions, I left the Appraiser to do his job.  As I drove away, I remembered an article I had read recently regarding the impact of Short Sales and Foreclosures on the Current Market Value of Properties for Sale.  I now await the Appraiser’s Report and hope that the value comes out positively.

According to the National Association of REALTORS®, nearly one in four REALTORS® have experienced a negative effect on a transaction due to a low Appraisal.  Unfortunately, about 40 percent of all homes sales this year have been either a Short Sale or a Foreclosure.  In many instances, the final sale of these properties has been for less than the mortgage.  This can negatively impact the value of the surrounding properties and makes it more difficult for Appraisers to support the value of a home.  It is especially difficult if you’re trying to sell a home in a neighborhood that also has Short Sales and Foreclosures currently for sale. Buyers could be in contract for more than what the Appraiser determines the property is worth.  This is where the problem lies, and a transaction could get  shaky.

I hope that for the Sellers and Buyers in our area, the values of homes hold firm.  We haven’t seen the number of Short Sales or Foreclosures that currently plague other parts of the country.  I can appreciate the position of Appraisers at this time and I empathize with Sellers, Buyers, and REALTORS®.