Orlando Real Estate Sales & Over Cautious Appraisers
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Orlando Real Estate Sales Affected by Over Cautious Appraisers
With the Orlando Real Estate market on the rise, appreciation has become an actual piece of the puzzle again. It’s very common these days for a property to receive several offers on it for thousands above the asking price, specifically in the more desirable neighborhoods. Unfortunately, appraisers don’t really care about offers that are submitted above asking price and will rarely appraise any Orlando property above that property’s listing price. Instead, they just go by the listing price and try and get as close as they can to it.
However, this doesn’t stop a potential home buyer from submitting a contract on a property for well above the listing price especially on Orlando short sales. The big problem with that is, if the house doesn’t appraise for the contract price, then the bank won’t finance the deal. At this point there are three things that can happen.
- The buyer will have to come up with the extra funds to make up the difference between contract price and appraisal value to the closing.
- The buyer will have to change their offer to whatever the appraisal came in at and hope that the seller accepts it.
- The deal falls apart because the seller refuses the lower offer and chooses to hold out for a bigger payday.
Any way you choose to look at it, appraisals are directly affecting Orlando real estate sales. It’s true that some appraisers are over cautious and are appraising Orlando properties for even less than what they should be.