Appraisals Getting Tough

I'm beginning to see and experience sales fail due to appraisals not meeting the sales price; I think this will become more problematic as time passes. Some homeowners are selling extremely low to get out of the game in aniticipation of a worsening market, other homeowners having to sell short....... there's the homeowner that is having to reduce his price significantly to stay competitive with the surplus of homes on the market (especially with the abundance of new construction)..... and then the paranoid home buyer fearing that he's paying too much and should have waited. With all this, layer in the fact that not all homeowners are able to reduce their price to the buyer's expectation without having to sell short. NOW we have appraisers getting too tight on the appraisals. If things don't loosen up we are going to head into a real estate home market traffic jam. -Kristie