Twenty-six percent of builders are seeing signed sales contracts fall though the cracks because appraisals on their homes are coming in below the contract sales price, according to a nationwide survey conducted by NAHB.
The survey showed that nearly 60% of the builders are reporting that inadequate appraisals are causing serious problems in the market, with the biggest problem being comparables of new single-family homes that are too often based on foreclosures and distressed sales.
Of those who are reporting appraisal problems, 54% said that the appraisal amount was actually less than the cost of building the home.
The HBA of Fort Wayne has been contacted by a number of local lenders asking us to please encourage our builders to list new sales on the MLS so that appraisers have comps.
Call the HBA if you have questions.