Denver Metro Area homeprices hit an all-time high, according to the S&P/Case-Shiller Home Price Indices report released at the end of August. This fast-paced real estate market is pushing prices higher, and oftentimes, appraisals are not keeping up.
Boulder homeowner Russ Brinkman put his townhome on the market at $310,000 dollars. It sold in one day which is an indication that the price was right. But the appraisal came in at $296,000 – $14,000 less than the sale price.
“I was disappointed,” Brinkman told CBS4.
An appraisal less than the sale price impacts how much the buyer can borrow for the home. In some cases, the seller may be forced to lower the sale price.
Most homeowners may believe that an appraisal is final, but real estate professor Ron Throupe said that it’s perfectly acceptable to appeal.
“In a good market, the prices are rising fairly quickly. That can easily happen, where the appraisal is not reflecting what happened this month versus last month,” said Throupe, of the Franklin Burns School of Real Estate, in the Daniels College of Business, at the University of Denver.