“I would definitely as soon as possible get that appraisal started so you know how to take care of the situation,” Niles said. “Because if you’re running up to the last few days of your contract and you have an appraisal come in, that’s going to be a problem, especially on a VA loan. Some of those VA loans, it could take a full two weeks or more to get those appraisals.
“You want to start that appraisal process and get the client to pay for it. Order it for them, and know what you’re up against. It helps the realtor be able to pull comps, know the market, and know what the offer should be. There’s a disconnect there on the agent side, on the listing price.”
Limited foreclosures
Part of that disconnect involves homeowners who are holding onto higher home values when they try to put their homes on the market. Home prices in many markets have fallen in recent weeks, but some sellers’ asking prices no longer align with the current market conditions.
“You run into issues because the appraisal is not coming in as high,” Niles said. “So you’ve got to renegotiate. You have owners who are in the homes and want to hold the price. There aren’t many, if any, foreclosures on the market. They’re all getting gobbled up. They’re not showing on the market.”
Even though market conditions have improved, Niles said the market is still incredibly competitive. On top of a competitive market, sellers know they have built up equity in their homes, which they may choose to tap into rather than sell and move.