Understanding Appraisal Gaps in Glastonbury: Insights for Local Homeowners
Breaking down the real estate headlines and MLS stats so you, the local homeowner, can stay informed on what matters to our hyper-local Glastonbury market.
Sales of single-family homes
There are 29 available homes on the market in Glastonbury. An uptick from last week's update. Of these 23 homes, 13 are new construction/2 of which are reviewing offers to purchase so we really have 27 homes for all the buyers looking. 16 of the 27 are re-sales - ready-to-go pre-loved homes. I know best and last deadlines have been called for some of these newer listings so this total will certainly be different by week's end.
Per MLS in Glastonbury: We have 1 house listed under 300k and 3 houses listed in the 300-400k range. 2 houses are listed in the 400-500 price point. 3 homes are listed in the 500-600k range. 4 homes are listed in the 600-699k range and just 1 listed in the 700-800 price point.. 1 home is listed in the 800's and 10 are in the 900's. 4 homes are listed over 1 million.
Sales of condos
Currently, there are 2 condos on the market in Glastonbury. If you are a condo owner and thinking about when to sell..now would be good.
Understanding the term "Appraisal Gap"
An appraisal gap refers to the difference between the agreed-upon purchase price of a home and the appraiser's determination of its fair market value. This becomes problematic when the appraised value is lower than the purchase contract amount, as lenders do not approve loans exceeding the appraisal value. When faced with an appraisal gap, and depending on how the offer was written, the buyer might have several options: they can walk away from the home, negotiate with the seller to lower the purchase price, or come up with the additional cash to bridge the gap. Some mortgage companies have been offering "Appraisal Gap Coverage". Well, it's really not a new thing. These companies are basically repackaging PMI! It can be a good alternative for buyers not wanting to stretch themselves too thin by making up a huge gap at closing. Sellers want to take the offer that covers all the potential in an appraisal gap. It is really the only way they know exactly what they will sell their home for when they sign the buyer's offer.