Homeowners & Appraisers See the Most Eye-to-Eye on Price in 3 Years

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Real Estate Agent with Allison James Elite CA. BRE 01501699

#TimeToSell #ChrisBJohnsonRealtor #SellersPayZEROCommission #ListYourHomeandPayNoCommission

Your home is probably the biggest asset you own. This is why you should hire a professional to guide you through all your real estate transactions. My goal is to help 24 to 28 families each year either buy or sell a home. I am NOT interested in Selling 100 or 200 homes a year because I would not be able to give each family the time, attention and energy they deserve.....

Homeowners & Appraisers See the Most Eye-to-Eye on Price in 3 Years | MyKCM

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% (or more) over the next twelve months. One major challenge in such a market is the bank appraisal.

When prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the same neighborhood that recently closed) to defend the selling price when performing the appraisal for the bank.

Every month in their Home Price Perception Index (HPPI), Quicken Loans measures the disparity between what a homeowner who is seeking to refinance their home believes their house is worth and what an appraiser’s evaluation of that same home is.

March 2015 marked the first month of a three-year gap between what an appraiser and a homeowner believed a home was worth. That gap widened to 2.65% in September 2015 and had consistently hovered between 1.0% and 2.0% through November 2017.

The chart below illustrates the changes in home price estimates over the last three years:

Homeowners & Appraisers See the Most Eye-to-Eye on Price in 3 Years | MyKCM

In the latest release, the disparity was the narrowest it has been since March 2015, as the gap between appraisers and homeowners was only -0.33%. This is important for homeowners to note as even a .33% difference in appraisal could equate to thousands of dollars that a buyer or seller has to come up with at closing (depending on the price of the home).

Bill Banfield, Executive VP of Capital Markets at Quicken Loans urges homeowners to find out how their local markets have been impacted by supply and demand: 

“The appraisal is one of the most important, although sometimes least predictable, parts of the mortgage process. The Home Price Perception Index is a way to illustrate the differences of opinion, and these differences affect everything from the type of mortgage a borrower can get to the expectations a seller has about the proceeds available upon sale of their home.”

Bottom Line

Every house on the market must be sold twice; once to a prospective buyer and then again to the bank (through the bank’s appraisal). With escalating prices, the second sale may 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 obstacles that may arise.

 

 

About Me

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Chris B. Johnson is a REALTOR® who Specializes in Short Sale and REO Transactions. Chris has been Certified as a California Association of Realtors HAFA Specialist, a National Association of Realtors Short Sale and Foreclosure Resource, Chris B Johnson Realtor is a Certified Distressed Property Expert, Certified Short Sale Negotiator, Certified Default Advocate and Certified Pre-Foreclosure Specialist. With a full time staff dedicated to short sale negotiations and transactions, we have been successful with (almost) every short sale to date.  LinkedIn Pro    UpNest    What's Your Home Worth?

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
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Rainmaker
125,040
Joseph Domino 480-390-6011
HomeSmart - Scottsdale, AZ
Real Estate Made Easy

Glad to see this statistic. I lose too much sleep worrying about appraisals.

Jun 06, 2018 02:32 PM #1
Rainmaker
404,617
Chris B Johnson
Allison James Elite - Moorpark, CA
5 Star Rated REALTOR® Quality, Not Quantity

Thank you Joseph Domino 480-390-6011 In our area, we are actually getting Appraisals at or over list, which is helpful :)

Jun 06, 2018 02:39 PM #2
Rainmaker
509,717
Tony Lewis
RE/MAX of Valencia (Hall of Fame) 30 year Valencia Resident - Valencia, CA
RE/MAX Valencia, Stevenson Ranch, Santa Clarita

Appraisals have come in more accurately lately.

Jun 06, 2018 02:41 PM #3
Rainmaker
404,617
Chris B Johnson
Allison James Elite - Moorpark, CA
5 Star Rated REALTOR® Quality, Not Quantity

...and that takes one more item off our To Do List :) Tony Lewis 

Jun 06, 2018 02:54 PM #4
Rainmaker
404,617
Chris B Johnson
Allison James Elite - Moorpark, CA
5 Star Rated REALTOR® Quality, Not Quantity

This Tri-Plex will be a great opportunity for Fix and Flip or Fix and Hold Rental. Convenient access to the 101 AND 170. Close to Public Transit, the Orange Line Busway and MetroLink NoHo Station. Safe and easy walk to Kittridge Street School, conveniently close to Westfield Fashion Square and Notre Dame High School. A creative mind could squeeze a lot of value out of this gem!

6558 Woodman Ave, Van Nuys, CA 91401 is now in the MLS. 

 

https://matrix.crmls.org/matrix/shared/mYhmDy29kyGd/6558WoodmanAvenue

 

Please go to the Xome.com website for more information:

 

https://www.xome.com/auctions/6558-Woodman-Avenue-Van-Nuys-CA-91401-258111607 

 

The Auction starts on June 16th

 

Thank You!!

Jun 14, 2018 12:51 PM #5
Rainmaker
404,617
Chris B Johnson
Allison James Elite - Moorpark, CA
5 Star Rated REALTOR® Quality, Not Quantity

Remodeled, Refreshed and Ready for move in! This College View Community Townhome has Appraised for $375,0000 and is exactly what you have been looking for. As you walk into the open living room you will be warmed with the Morning Sun which draws you into the Dining area and back into the completely updated Kitchen with marble counter tops, new stainless steel sink, Whirlpool Oven Range and Microwave. Brand New carpet leads you upstairs where you find two bedrooms with a peaceful view and The Master Bedroom with it’s private, ensuite master bath. Three closets in the Master will give you more than enough room for her, his…and more of her clothes! There is plenty more storage upstairs and down. All the bathrooms have been updated with new cabinetry, granite counter tops and fixtures. You have a Private Patio behind the kitchen which adds to the Open Feel of the Home. Your detached, direct access 2 car garage is large enough to fit most SUV’s and pickup’s and has plenty of storage for your “extra” toys.  College View Town Homes is private community with lush landscaping, generous common areas and separate swimming pool and spa. Great for families as small pets are welcome too! Ample guest parking is available and you are within walking distance of the Elementary School, High School and Oxnard College. You have easy, nearby Highway Access and are close to Military Bases, Shopping, Multi-Cultural Grocery, Retail and Eateries. The Beach and Hiking Trails are a short drive away. Priced to Sell, this home will be gone before you know it so call for a showing!

Homes VA Approved and For Sale In Oxnard, 2021 E Bard RD Oxnard CA 93033 Appraised for $375,000, IS Remodeled Refreshed VA Approved & Ready for move in 😊

YouTube:  https://youtu.be/etWEBTGEgpE

MLS Link: https://www.flexmls.com/share/1VVqr/2021EBardRDOxnardCA93033  

ActiveRain: http://activerain.com/droplet/5bHK

Xome: https://www.xome.com/homes-for-sale/2021-E-Bard-Road-Oxnard-CA-93033-240289931

Jun 16, 2018 11:32 AM #6
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Rainmaker
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Chris B Johnson

5 Star Rated REALTOR® Quality, Not Quantity
Is it Too Late to Short Sell My Home??
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