Arizona Home Appraisals Can Be Disappointing

In the Phoenix area, the 2015 AZ real estate market is starting off strong and is showing signs of improvement. With any transitional market, up or down, there will be challenges with appraisals. As a broker for West USA Realty, I have received on average 2-3 calls per week from Arizona real estate agents on how to deal with low appraisals. Of course, no one complains when the home appraises for MORE than the purchase price. However, it is a different story when the appraiser issues a value that falls below the purchase price.

I found that AZ Home appraisers are reluctant to report local appreciation and this is becoming a significant complication. In a new poll of its members, the National Association of Realtors (NAR) found that 33% reported appraisal problems during the month of May.

Even appraisal experts concede that this is a troubling issue. Chris Polychron, president of the NAR, said poor appraising "in markets that are no longer in decline is the single most important" valuation obstacle to seeing a real recovery.

Therefore, in markets where the inventory of homes is low, there will be more pressure on the buyer to make up the difference in the appraised value versus the contract price.

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