Appraisers & Homeowners Don’t See Eye-To-Eye on Values

By
Real Estate Agent with Keyes Company

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.

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 selling price when performing the appraisal for the bank.

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.

 

Bottom Line Every 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.

http://jupiterflreal.estate/appraisers-homeowners-dont-see-eye-eye-values/

 

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Rainmaker
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Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI
HomeSmart Real Estate - Scottsdale, AZ
Arizona Homes and Land Group/ Buy or Sell

Thank you Drew Saporito A good appraiser will value a custom home to other custom homes and not to a tract neighborhood that is close by. Taking the extra time to really understand the improvements and updating a home from those of neighbor homes built by the same builder must be done. Upgrades can set a home apart from the same floorplan home that has not been updated by many tens of thousands of dollar.

Oct 15, 2016 01:51 AM #1
Ambassador
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Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

It is tough as they can go online to get a feel for their home's value and wonder how it can be so different that the appraisal that is offered by a local person that comes into the house and sees it for what it is.

Oct 15, 2016 03:19 AM #2
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Rainer
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Drew Saporito

Native Realtor
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