Asheville’s Weak Appraisals Hamper Home Sales
Asheville’s Weak Appraisals Hamper Home Sales.
Asheville Real Estate - weak appraisals are driving down the real estate market.
With the sluggish economy pushing home values down the last few years, some real estate professionals and economists say that low appraisals are pushing values down even more and undermining a housing recovery.
The National Association of REALTORS® reported that 16 percent of real estate pros surveyed in June reported a cancelation in a sale, mostly due to a large number of low appraisals.
On a national level many are accusing lenders of pressuring appraisers to come in with lower estimates and for basing their valuations largely on nearby distressed sales that often sell at discounted prices. That has prompted at least four states, Illinois, Nevada, Missouri, and Maryland to consider legislation that would prevent appraisers from using distressed sales when conducting their valuations.
But the Mortgage Bankers Association says more conservative appraisals are needed. The trade association says it’s a way to protect the banks from future problems with investors who buy mortgages.
In many areas Asheville Homes are holding their price but in others low appraisals are creating difficulty for buyers to purchase the home unless the seller is willing to adjust the price.
