Appraisers & Homeowners Don’t See Eye-To-Eye on Values
In today’s housing market, where supply is very low and demand is very high,
home values are increasing rapidly. Many experts are projecting that
home values could appreciate by another 5%+ over the next twelve months.
One major challenge in such a market is the bank appraisal.
prices are surging, it is difficult for appraisers to find adequate,
comparable sales (similar houses in the neighborhood that closed
recently) to defend the selling price when performing the appraisal for
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.
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 get
together to discuss this, and any other obstacle that may arise.