Twenty-six percent of builders are seeing signed sales contracts fall through the cracks because appraisals on their homes are coming in below the contract sales price, according to a nationwide survey conducted by NAHB.

The survey showed that nearly 60% of the builders are reporting that inadequate appraisals are causing serious problems in the market, with the biggest problem being comparables of new single-family homes that are too often based on foreclosures and distressed sales.

“Lost home sales are killing jobs, deepening the housing slump and hurting local economic activity,” said NAHB Chairman Joe Robson, who noted that construction of 100 single-family homes generates 324 local jobs, $21.1 million in local income and $2.2 million in taxes and other revenue for local governments in the first year.

Read more on the survey in NBN.
For more information, e-mail David Ledford at NAHB, or call him at 800-368-5242 x8265.


View NAHB's Appraisal Industry Overview

Be in the know about appraisals. NAHB’s Real Estate Appraisal Industry Overview outlines the evolution of the appraisal industry, the new “Home Value Code of Conduct," financial institutions' role in the appraisal process, and more...

View NAHB's Appraisal Industry Overview here.

For more information, e-mail Bill Renner or call him at 800-368-5242 x8597. [Return to top]