More times than I care to admit…Buyers and sellers are again “shooting from the hip” when it comes to making a deal. The 2006 bust was mortgage industry related, we all know this…However now, as people are getting back above water in houses they were previously drowning in…they are again getting…wait for it…GREEDY!
Appraisers are still being conservative, yes. Buyers in an attempt to secure a home as the prices increase (and this is at “normal” levels I might add) are again offering and/or being asked to pay over what their lender establishes as the market value of their purchase. In a recent discussion with an appraiser friend we both agreed on this disturbing trend. Who is to blame this time!?
Demand for housing is still strong and supply is fairly reasonable so why is this happening? Short sales are closing every day (fewer and fewer) and as they continue to become “normal” sales…the quality of our inventory improves. Houses are again being cared for as best as owners can. Owners are, in my opinion, pissed off that they “lost” so much money (which they never really had) in equity and are also convinced it’s only them that suffered and consequently are digging in…Just remember…YOU will be a buyer soon and be asked to pony up more that the home you choose might be worth, then what!?