You might remember some of my posts in the past about dreaded appraisals (like this one and this one … oh, and this one)! Well, I haven’t talked about appraisals for a while because we haven’t had that much trouble with them. However, since the market started picking up, they’ve become an issue again. Buyers are willing to pay reasonable prices for homes today and things are selling quickly. Often we are getting multiple offers, which just further substantiates the prices. But over and over, appraisals are coming in low. It’s a result of the fact that the comps being used sold several months ago, and prices have been on the rise. Here’s how we are dealing with it: recommending our clients get the appraisal done up front so less time is wasted if the house doesn’t appraise; getting buyers to sign up front that they are willing to accept an appraisal even if it comes in below the purchase price; recognizing the value of a cash offer. Don’t let bad appraisals get you down though – this too shall pass!