My Ocotillo Home
  • For Sale
    • Search Form
    • Featured Listings
    • Office Properties
    • Coming Soon!
    • Vacant Land
    • New Construction
    • Pre-Market Homes!
    • Listing Alerts
    • Build a New Home
    • Howell’s Best Values
  • Selling
    • Free Home Valuation
    • Thinking of Selling?
    • Don’t Go It Alone!
    • What’s Your Home Worth
    • Pre-Marketing Your Home
    • Tips for a Quick Sale
    • 10 Selling Tips
    • Staged To Sell
    • Costly Selling Mistakes
    • Your Situation Special?
    • Are You Under Water
    • Foreclosure Information
    • Seller Concessions
    • Getting Ready to Move
    • The Successful Move
  • Buying
    • Winter Incentive
    • Steps to Buying
    • How Much Can You Afford?
    • Buying Tips
    • Build a New Home
    • How Important Is Location?
    • Finding the Right Home
    • Loan Pre-Qualification
    • Mortgage
    • Property Tax Estimator
    • Buy or Rent?
    • Lease Options
    • Interior Zoning
    • Inspection: Worth The Cost!
    • Moving Tips
    • Walking Scores
    • Glossary of Terms
  • Mortgage
    • How Much Can You Afford?
    • Mort-calc
    • Loan Pre-Qualification
    • Mobile App
    • Mort-calc
    • Property Tax Estimator
  • Market Area
    • Brighton
  • Blog
  • Videos
  • About Us
    • Client Loyalty Program
    • Local Expertise
    • Livingston Home Pros
    • Office Locations
  • Promos
    • Client Loyalty Program
    • Winter Incentive
    • Lower Commission & Free Home Warranty
    • Free Home Valuation
    • Client Referrals
    • Privacy Policy
  • Contact
    • Office Locations
    • Privacy Policy
Home » Buying a Home » Appraisal & Home Owners Agree!
Jun06 0

Appraisal & Home Owners Agree!

Posted by Sam in Buying a Home, Local Experts, Mortgage Info, Real Estate, Selling a Home, Uncategorized

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:
Home Value and Appraisal
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, meet with an experienced professional who can guide you through this and any other obstacles that may arise.
As reported by Keeping Current Matters, 6/9/18

Recent Posts

  • Hello world!
  • 4 Good Reasons to Consider Selling your Home
  • 2020 Air Conditioning Freon Ban
  • COVID-19 & The Return to Real Estate
  • Selling? Skip Remodelling

Categories

  • Buying a Home
  • Featured Property
  • Local Experts
  • Mortgage Info
  • New Construction
  • Pre-Market Opportunities
  • Real Estate
  • Retirement
  • Selling a Home
  • Short Sale & Foreclosure
  • Uncategorized

Archives

  • January 2021
  • June 2020
  • May 2020
  • December 2019
  • November 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • September 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • April 2017
  • February 2017
  • January 2017
  • December 2015
  • February 2015
  • December 2014
  • September 2014
  • August 2014
  • March 2014

© 2011 My Ocotillo Home | Designed by Elegant Themes | Powered by WordPress