DENVER (CBS4) – Denver real estate is hot, with some buyers getting into bidding wars for homes.
Homeowners are receiving offers for more than their homes are appraised for, and that’s causing problems in getting bank loans.
“The appraisal came in $10,000 under our price they had offered me,” said Annamarie Ellis, a CBS4 employee.
Offering too much money makes getting a bank loan difficult. In Ellis’ case, she lowered the price of her home so that her buyers could get the loan money they needed.
Some mortgage companies are requiring additional appraisals, which can drastically delay the process.
“The buyer had already left his apartment and was sleeping on everybody’s couch; so it was extremely inconvenient,” said Amy
Shonstrom of Perry & Co. Realty. “We never had a clear answer from the lender about when we were really going to close.”
Realtors say low market inventory is causing property values to rise, and it’s hard for appraisers to keep up with the quickly changing and inflating market.
“It’s certainly difficult when the market is moving so fast as it is right now.” said Cody Gale of Colorado Appraiser Consultants.
Realtors suggest that you get to know your lender, use a local lender and don’t become so emotionally attached that you overpay.