In 2024, the frequency of low appraisals can vary depending on several factors, including market conditions, property types, and geographic areas. Generally, low appraisals tend to occur more often in competitive housing markets where bidding wars drive sale prices above market value.
Factors contributing to low appraisals include:
1. Market Fluctuations: Rapidly changing markets can lead to discrepancies between sale prices and appraised values.
2. Property Condition: Homes that are not well-maintained may appraise lower than expected.
3. Comparative Sales: If recent comparable sales (comps) in the area are lower, it can impact the appraisal.
4. Economic Conditions: Economic downturns or uncertainties can influence buyer demand and appraised values.
While it’s difficult to quantify an exact percentage of appraisals coming in low, industry reports and anecdotal evidence suggest that fluctuations happen regularly. Buyers and sellers should be prepared for the possibility of appraisals coming in lower than expected, especially in fluctuating markets.
