This Reuters article on real estate appraisal problems features two Phoenix area couples and their appraisal problems when trying to buy two Phoenix area homes.
It’s a good summary of the current situation. One couple gave up because of the problems and in the end gave up and didn’t buy a home.
Borrowers are watching their “locked in” low rates expire — while they pay for one appraisal after another. Lenders are afraid to trust the appraisals they get, and are ordering more and more of them. The appraisers themselves say they’re being paid less to work faster in a more confusing market than they’ve ever faced.
Appraisals have generally been erroring on the downside. Low appraisals not only hurt sellers but can also hurt buyers as the Reuters article shows.