One of the newest innovations in this crazy seller’s market we’re all experiencing is what I fondly refer to as “appraisal gap coverage”.
Values are increasing so quickly (especially in the spring market) that many buyer’s are offering to pay all or part of any appraisal shortfall.
Since the appraisal values may lag the real time market appreciation during the aggressive spring months, it’s very common for the appraised value to fall short of the contract prices.
Buyers are even sharing proof of funds with the sellers to show they have the needed cash to make up for potential appraisal shortfalls.
But by the time the fall market rolls around, short appraisals are much less common. Value tend to settle down, especially when appraisers have plenty of spring and summer sales to support fall prices.
What innovations will we see in 2022 to help motivated buyers get their offers accepted???
We’ll see very soon!
David Baker, Broker/Owner