In today’s housing market, we are seeing high demand and low inventory — and when this happens, prices naturally rise. Thanks to these home sale prices appreciating at near-historic rates, certain challenges have arisen with regards to appraisals. For the last few months, it has become more and more common for an appraisal to come in below the contract price on a home. Chief appraiser for CoreLogic Shawn Telford explains, “Recently, we observed buyers paying prices above listing price and higher than the market data available to appraisers…this difference is known as the appraisal gap.” Put simply, because of skyrocketing buyer demand, prospective homeowners are often willing to pay over asking to secure their dream homes. However,…

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