How does the current seller’s market at Lake Martin, Alabama affect appraisers?
Waterfront home prices have been increasing steadily at Lake Martin for the last several years. The actions of buyers influenced by Covid-19 seemed to add gasoline to the fire.
An appraisal on a Lake Martin home that is for sale should be about the search for truth, right? I mean, theoretically, the buyer, seller, and the lender should just be after one thing – the market value of the waterfront home, condo, or lot.
I think it is hard for appraisers to give an accurate value for a lake property when they are limited by (what I think) are unrealistic constraints by banks’ underwriting process. Lake Martin is a really big lake but a small market which often makes it hard to find comparable sales. I also believe that due to our rising market value the appraisers have a difficult time convincing the underwriters of that increase. Underwriters typically want to see a lot of comparable sales, close by, in a short period of time like three months. In a market like Lake Martin, that isn’t always realistic.
Please take a minute and watch my video (see above) to help explain my empathy for appraisers and how all of this affects the Lake Martin real estate market.
This is an exciting market which makes this a fun time to be a buyer or a seller! My name is John Coleyand I would love to help you navigate Lake Martin! Give me a call or text or email![email protected]