George S. May Business Blog

Bad appraisals negatively affecting home sales

According to the National Association of Realtors, a reported 25 percent of its members have admitted to losing a sale at the hands of failed appraisals. In the meantime, the NAHB, or National Association of Home Builders, has also come forward alleging that low appraisals have hindered the sales of around 25 percent of all new home sales.

In the end, somewhere in the neighborhood of 40 percent of all home sales have been either foreclosures or sold for less that the mortgage on the home. Appraisers have been pointing toward this number as an excuse,  reminding us that part of their assesment includes them looking at recent comparable sales.

More info on the subject can be found here 

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