The Appraisal Contingency
It’s a Seller’s market. Properties are shorter days on market, even at certain price points, Seller’s are experiencing multiple offers. Assuming the property is at the “correct” list price (per comps of current “solds”), it means that any strike price will proceed to closing, right?. Well, not necessarily. Bidding wars may move the price upward, but that does not guarantee that there will be a smooth transition to closing, especially with a Lender/loan is involved.
The Boulder, Colorado, and surrounding market is experiencing price points that Buyers are paying more than the list price. However, many of these properties are going back on market as “Buyers could not secure financing”. What this really means is that the property simply did not appraise, or it was a tough appraiser that caused the property to not appraise.
M. Anthony Carr provides an article that goes into detail regarding the appraisal contingency. Click Here for the full details.