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.

  • 10 gifts your first-time homebuyers will love

    For first-time homebuyers, buying a home is both stressful and a reason to celebrate. If you like jo...

  • Why you should start 2019 with a bullet journal

    Keep track of the past, organize the present, and plan for the future with a bullet journal. Here...

  • Facing a tough co-op board? 4 tips to help your clients get that apartment

    Do the boards of co-operative apartment buildings relax their guidelines when the market gets toughe...

  • The Real Word: How real estate agents are stepping up to help wildfire victims

    Watch Byron Lazine and Nicole White give a real estate agent’s perspective on industry-related top...

  • 6 ways to strengthen client relationships on Thanksgiving

    With help from brokers, Inman put together a list of creative ways agents can use Thanksgiving as an...

  • Homesnap Pro+ wants to help bolster your SEO

    Homesnap Pro+ is a new product from the search app to help agents establish and manage Google My Bus...

  • Here are the priciest real estate markets in the world

    This month, consulting firm Webster Pacific partnered with New World Wealth, a market research firm ...

  • Magicplan creates floor plans in seconds for $3 a piece

    Magicplan, a floor plan and 3D tour creation app, is perfect for real estate agents, designers and c...

  • Realty One adds a way for agents to recommend home services

    Under the deal, Realty One Group’s 11,000 real estate professionals across 35 states will gain...

  • Ebby Halliday CEO on honoring the past and updating the brand

    Longtime HomeServices of America executive Chris Kelly has some trailblazing shoes to fill in his ne...

November 2018
Mon Tue Wed Thu Fri Sat Sun
« Oct    
 1234
567891011
12131415161718
19202122232425
2627282930  

  • 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 ...