Good Monday Morning!

Finally, a touch of summer.  Let's hope that the sun sticks around the Tracy area for a while now.

Over the past couple of months there has been an increasing number of homes that are not meeting value with their appraisal.  This is really creating havoc with home sales as many of these homes values are falling well below where they sold.  This is a downward value spiral that once it begins can be devasting.  With each new lower appraisal now comes a lower priced home sale that the next appraiser will use when trying to determine value.  Not only are the short sales and bank owned properties creating pricing problems, but now the appraisers are having an impact as well.

For this reason, we are being extremely cautious when pricing homes for the market.  Using recent comparable sales is one way of making sure that we do not have a problem.  Also, adjusting prices for homes that sit on the market for a while is important.  As our market continues to decline, this problem may become worse.

The price you think your home is worth and the price the appraiser thinks it is worth may be very different.  If you are considering a home sale, make sure that your agent uses current comparable homes similar to yours that have sold with no less than 90 days in the past.  Being cautious with pricing may save you some real problems down the road.

Have an awesome week!

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