What does one DO in a case like this? Well, if you have an experienced, professional, fierce agent (like me 😉 you swing into action, keep your cool, and trust the professional relationships you’ve built during the process so far! First step was to see who was on what page. Fortunately in this case EVERYONE; Sellers, Buyer, Agents, Lenders, original appraiser, even the owner of the appraisal company were all in agreement that the price was supportable. I’ll spare you the details. Suffice it to say we were victorious and Monday afternoon successfully closed both transactions. Special thanks to: Buyer’s agent David Schilichter (Keller Williams) and lender Lou Tornando (First Cal Mortgage), appraiser Jim Brown, Alex Vukovic at American Title Services and fellow YCRE Listing Agent Paula Schein for staying the course.
I don’t know precisely how, but ultimately and very slowly prices did recover. What we are seeing in today’s appraisals is the same as what we experienced in 2008-09 but this time its caused by the precise opposite reason. Back then it was an immobile market flooded with distressed homes, rising un-employment, lack of consumer confidence. Today’s appraisal debacle is being driven by rising employment & consumer confidence, cheap money, returning prosperity and an acute lack of inventory of homes to buy.Time heals everything. Eventually the appraisal conditions will be more harmonious. In the meantime, if you’d like to know how to handle an appraisal process check out the list of suggestions in the side bar or give me a call. I’ve learned the hard way but you don’t have to.