Home Owners Get More Realistic on Prices
DAILY REAL ESTATE NEWS | THURSDAY, NOVEMBER 10, 2016
Home owners' perceptions of the value of their homes are starting to get closer in line to the opinions of appraisers.
Read more: The Delicate Dance of a Fair Appraiser
The latest Quicken Loans Home Price Perceptions Index shows that the average appraisal was 1.15 percent lower than home owners’ expectations. In September, appraised values were 1.26 percent lower than home owner expectations -- so the gap is narrowing between the two. This is the fourth consecutive month the index has moved closer in line between home owner and appraiser estimates on values.
“This information can be helpful to home owners to either prevent bumps in the mortgage process or realize they may have more equity available to them than they think,” says Bob Walters, Quicken Loans’ chief economist.
In the West, appraisal values tended to rise past home owner estimates. On the other hand, in the East and Midwest, home values tended to fall below home owner expectations. Take a look at the chart below for a breakdown across the U.S. of home value expectations between appraisers versus home owners:
Source: Quicken Loans