Although stabilizing home values and modest price increases across much of the land are fueling a housing upturn, the recovery calculator still remains tenuous in part because a flawed appraisal process continues to thwart accurate valuations on new homes.
NAHB has made it a priority to enact major reforms in appraisal practices so that appraisals reflect accurate home values and do not needlessly kill home sales.
Too often, due to faulty appraisal practices, home sales have come in below a contract sales price and brand-new homes with state-of-the art appliances and interior upgrades have been compared to distressed properties. In some cases, this has led to a new home getting appraised at less than the construction cost.
So how can builders fight back against low appraisals and win back sales? Read the full story here.