What Are the Biggest Challenges In Our Market?




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One of the biggest challenges facing buyers and sellers today in the New Jersey Commuter Towns market is bank appraisals. They’ve been coming in very conservatively lately. In fact, three homes we sold in the last week had appraisal issues. There are a few reasons this is happening.

For one, a lot of these appraisers are not local and don’t know the local market, so their appraisals are bound to be off. Appraisers are also ignoring some comparable sales while picking sales that aren’t as relevant. Appraisers don’t put a premium on certain features that a buyer or seller had.

Appraisals take into account what has sold, so they only take into account what has passed, not what’s currently selling and under contract. Getting a re-appraisal is almost impossible these days, so it’s making our job as Realtors difficult. We want to get the highest value possible for your home, but a bad appraisal leaves us with only a few options.


Hope for the best but plan for the worst.

The buyer can walk with their entire deposit, they can split the difference, or in rare instances, they can make up the entire difference themselves. It’s good to hope for the best but plan for the worst. Just make sure you give yourself a healthy buffer, in terms of cash, when moving forward.

If you have any questions for us or you’re looking to buy or sell yourself, give us a call or send us an email. We’d be happy to help!

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