Rapid appreciation in DFW -- what if house doesn't appraise

[Jessica G.]

We are thinking about putting a house on the market in DFW (updated starter homes are going in hours under multiple offers) and I am pretty sure financing bank's appraisal is going to come in at less than what a buyer is willing to pay for it.

We're not going to lower the price to accommodate bank financing when it's such a hot seller's market (unless we have to, and I don't think we do), so do you think I need to communicate that in the listing, or just let agents know?

[Albert Bui]

Originally posted by @Jessica G.:

@Account Closed I don't understand what you are getting at. Can you explain why a seller shouldn't list/sell for what the market will bear? Do you consider the appraisal process to be flawless and the sole guide by which we should conduct our transactions? Thanks!

Appraisals are lagging indicators and do not indicate the current price at which a buyer and seller are willing to agree upon in the market with out additional incentives. The appraisal is actually a set of guidelines that the loan/note investor sets up to determine value in their eyes so that they can reduce their risk when deciding value for the purposes of obtaining a loan.

This "value," is different than the going price in the market right now.

There are a uniform set of appraisal practices for which appraisers have to abide by. The better indicator of what a buyer and seller is most likely to agree upon with regards to a sales price in a particular neighborhood would be to obtain a BPO or brokers price opinion.