BrokerPulse

RealTrends Q32021 BrokerPulse sees brokers still optimistic about the market, wary of competition and wondering when inventory will rise.

2021 RealTrends Brokerage Compensation Report

For the study, RealTrends surveyed all the firms on the 2021 RealTrends 500 and Nation’s Best rankings, asking for annual compensation data for the 2020 calendar year.

Knock.com’s Sean Black on the transaction revolution

Real estate is on its third revolution, from the digital revolution of the early 2000s to the information revolution kicked off by Trulia and Zillow to today's transaction revolution.

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Appraisals & Valuations

The appraisal gap is complicating deals across the country

Some buyers are borrowing money from relatives and taking loans out against their retirement

couple looking away HW+

The home checked off every box on Linda’s list. It had a large, fenced-in yard, modern appliances in an updated kitchen, a “man cave” for her husband, beamed ceilings, a massive master suite and was located in a good school district.

The house, in the Nashville area, was listed at $405,000. Linda (who asked that her real name not be used) beat out a dozen other prospective buyers in a bidding war by offering $445,000 and waiving all contingencies. That’s common these days.

Unfortunately, the appraisal put the house’s value roughly $50,000 below than what she paid. With others waiting in line behind her, the seller wouldn’t budge on price. Linda had a sizable downpayment but still needed to find a way to close the appraisal gap. She received help from family members and was also able to take a loan out against her 401(k) to make up the difference. Linda plans to move into the new house later this spring.

But not everybody has the ability to tap friends and family or investments when the appraisal and the final sale price don’t match – many deals have fallen apart as a result, loan originators and real estate agents said. The gap between appraisal and what buyers are willing to pay in one of the wildest real estate markets in modern history has created friction between agents, lenders and appraisers working under stressful conditions.

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