The current shortage of real estate appraisers in many parts of the U.S. means real estate deals may take longer to close.
According to the Appraisal Institute, the number of expert property evaluators has fallen by 20% since 2007. And its predicted there will be another 3% decline over the next 10 years. This may lead to less accurate appraisals by appraisers that need to cover unfamiliar states or localities.
What you should do:
- Ask about an appraiser’s experience in your area.
- Never agree to an automated appraisal without an expert actually looking at the property. Software programs generate property values on comparable properties rather than by eyes-on evaluation.
- Ask your lender if there is a delay in your area. Is a 30-, 45-, or 60-day interest rate lock in sufficient and how much will it cost to get an extension if needed?
- If selling a home, ask your real estate agent how a delay will affect the purchase of a new home that is contingent on the sale of your old home first.