Please wait as we prepare your PDF file ....

Mission Chronicle Blog

Search Blog

our goal is to help you stay informed by providing timely and interesting articles.

Gap between appraiser/homeowner opinion of value grows to almost 2%

07/12/2016

Download PDF

The saying goes that you have to see something to believe it — well, homeowners all over the country are seeing home prices skyrocket and believe that their home, too, should be worth more than they paid for it.

According to the latest Quicken Loans Home Price Perception Index (HPPI), those perceptions are off by about 2 percent.

In June, appraisers valued homes at 1.93 percent lower than what homeowners expected. This is a wider gap between appraiser and homeowner opinion than in May, when the difference was 1.89 percent.

image001

“Perception is everything. It can make or break a home sale or mortgage refinance,” said Quicken Loans Chief Economist Bob Walters in a press release. “That’s why it’s so important for homeowners to realize how they perceive their home’s value could vary widely from how an appraiser views it.

“If the estimate is lower by just a few percentage points, the buyer could need to bring as much as another several thousand dollars to the table to avoid having to restructure the loan.”

Despite the difference in homeowner expectations versus appraisal reality, home valuations overall grew 0.84 percent from May. That may seem marginal, but incremental increases make a difference — with valuations experiencing a 4.47 percent increase year-over-year.

This trend was also reflected regionally; all four quadrants of the nation showed small monthly gains with more significant growth compared to June 2015 — with the West holding the lead at 5.84 percent year-over-year growth in appraised value. The Northeast, in comparison, recorded modest annual growth of 2.07 percent.

In June, appraisers valued homes at 1.93 percent lower than what homeowners expected.

Click To Tweet

Still, home value perceptions fluctuate greatly among the nation’s cities. For example, homeowners in Denver actually underestimate the value of their property by as much as 3 percent, whereas those in Baltimore, Detroit and Philadelphia tend to overvalue their homes by more than 3 percent on average.

“Nationally, home value increases are well within the healthy range,” Walters added. “Although, the variances across the country can influence owners’ perception. Owners in the West, where appraised values are rising more quickly, tend to underestimate their home’s value. The opposite is true for those in the Northeast, with appraised values showing slower growth.

The Quicken Loans Home Price Index and Home Price Perception Index measures the difference between appraisers’ values and homeowners’ opinions of home values. It compares estimates on homeowner-supplied refinance mortgage applications to the appraisal later performed. The national composite is determined analyzing appraisal and homeowner estimates throughout the country. Quicken’s Home Value Index is based solely on appraisal data from home purchases and mortgage refinances.

Email Caroline Feeney.

Like me on Facebook! | Follow me on Twitter!

Source: click here

Read More

INSPIRED, INTELLIGENT, INSIGHTFULL

STAY INFORMED WITH TIMELY AND INTERESTING ARTICLES FROM OUR BLOG, MISSION CHRONICLE. OUR ASPIRATION IS TO PROVIDE REALTORS AND OTHER REAL ESTATE INDUSTRY PROFESSIONALS WITH EXCEPTIONAL RESOURCES AND SHARE OUR KNOWLEDGE TO PROPEL YOU TO YOUR GOALS.

  • 5 business pitfalls that’ll have you bleeding money

    If you want more money in your bank account, there’s no better time than the present to eliminate ...

  • Lesson learned: Marketing is everything in real estate

    Massive Agent’s Dustin Brohm’s experiences as a young agent inspired him to help other real esta...

  • Dear Marketing Mastermind: How do you know your marketing is working?

    This month’s column is all about finding out how your marketing efforts are being perceived by you...

  • Yes, there is such a thing as too much real estate tech

    Today it seems as though there is a tech tool or solution for every stage of the real estate transac...

  • 3 essential skills you need to improve lead conversion

    During a recent video coaching session, one of my clients was visibly frustrated. She had plenty of ...

  • Meet the Inman Innovator finalists: Most Innovative Real Estate Team part 2

    Every year, Inman celebrates the most innovative teams, the top producers and business experts who a...

  • Meet the Inman Innovator finalists: Most Innovative Real Estate Team

    Every year, Inman celebrates the most innovative teams, the top producers and business experts who a...

  • magicplan Floor Plan Creation App

    magicplan, the floor plan creation app for attractive listings magicplan is a floor plan creation ap...

  • iovox Phone Call Productivity for RE Professionals

    The new mobile and desktop app from iovox is improving how real estate professionals make and manage...

  • Spark New Development Real Estate Sales Software

    Spark was made by real estate industry experts for the new development sales industry. Spark’s sof...

July 2018
Mon Tue Wed Thu Fri Sat Sun
« Jun    
 1
2345678
9101112131415
16171819202122
23242526272829
3031  

  • Polls

    What information you are looking for?

    View Results

    Loading ... Loading ...
  • Last month Results

    How Is My Site?

    • Good (100%, 3 Votes)
    • Excellent (0%, 0 Votes)
    • Bad (0%, 0 Votes)
    • Can Be Improved (0%, 0 Votes)
    • No Comments (0%, 0 Votes)

    Total Voters: 3

    Vote

    Loading ... Loading ...