Home values continue to climb and are projected to increase by about 5%
over the next twelve months. That is great news for anyone who owns a
home. However, it could present a challenge for a family trying to sell
If prices are surging, it is difficult
for appraisers to find adequate, comparable sales (similar houses in the
neighborhood that closed recently) to defend the sales price when
performing the appraisal for the bank.
The National Association of Realtors (NAR) recently released information revealing just how prominent the challenge is in today’s market.
And the challenge is deepening…
Every month, Quicken Loans
measures the disparity between what a homeowner believes their house is
worth as compared to an appraiser’s evaluation in their
Home Price Perception Index (HPPI). Here is a chart showing that difference for each of the last 12 months.
As we can see the difference has increased each of the last two months.
house on the market has to be sold twice; once to a prospective buyer
and then to the bank (through the bank’s appraisal). With escalating
prices, the second sale might be even more difficult than the first. If
you are planning on entering the housing market this year, let's meet up
so I can guide you through this, and any other obstacle that may arise.