The current practice of overbidding has resulted in 23 percent of home sales being delayed due to appraisal issues. Morevoer, 12 percent of the proposed deals ultimately fell through as the problem could not be resolved.
Since mortgage lenders will only lend the amount of the appraisal, those buyers seeking funding are increasingly having a difficult time.
To get around the low appraisal issue, come buyers are waiving the appraisal contingency, meaning they will make up the difference in cash.
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