August 8th, 2012
August 8th, 2012
Low Inventory = Low Turnover = Fewer Comps = Appraisal Problems?
I have lately had a few appraisal problems that I hope does not turn into a trend. The inventory in the DC Metro area is at the lowest point it has ever been since these sorts of inventory statistics have been tracked, starting 16 years ago. The problem, which is far from alarming at this point, is that little inventory means there are not as many sales as there could be. This means there is not as much turnover as there could be. Less turnover means when a house does sell and the appraiser goes looking for recent comparable sales to support the purchase price, there may be a problem finding enough comps to support the purchase price.
