In today’s housing market, where supply is very low
and demand is very high, home values are increasing rapidly. 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 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.
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The gap between the homeowner vs. appraiser’s opinion had been heading in the right direction (closer to even), until this past month, when the gap widened again to -1.99%.
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The gap between the homeowner vs. appraiser’s opinion had been heading in the right direction (closer to even), until this past month, when the gap widened again to -1.99%.
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, meet with an experienced professional who can guide you through
this, and any other,
obstacle that may arise.Looking to Buy, Sell, or Invest? Contact:
David Demangos
858.232.8410
Locally Known, Globally Connected
Luxury Home Marketing Specialist
Global Property Specialist
David@AwesomeSanDiegoRealEstate.com
Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!
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