Jan 25 2018 53691 1

Dated: 01/25/2018

Views: 17

Image title



Gap Between Homeowners & Appraisers Narrows to Lowest Mark in 2 Years

   For Sellers, Move-Up Buyers, Pricing

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 4% 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 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.

In the latest release, the disparity was the narrowest it has been in over two years, as the gap between appraisers and homeowners was only -0.5%. This is important for homeowners to note as even a .5% difference in appraisal can mean thousands of dollars that a buyer or seller would have to come up with at closing (depending on the price of the home)

The chart below illustrates the changes in home price estimates over the last two years.


Image title



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:

“Appraisers and real estate professionals evaluate their local housing markets daily. Homeowners, on the other hand, may only think about their housing market when they see ‘for sale’ signs hit front yards in the spring or when they think about accessing their equity.”

“With several years of growth, owners may have more equity than they realize. Many consumers use the tax season at the beginning of the year to reevaluate their entire financial life. It also provides a good opportunity for them to consider how best to take advantage of their equity while mortgage interest rates and borrowing costs are still near record lows.”

Bottom Line 

Every house on the market must 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, let’s get together to discuss this and any other obstacles that may arise.

Blog author image

Jim Reidenbaugh

I have been an entrepreneur throughout my adult life, and after being involved in various business ventures in my early 20’s I went back to school and completed my degree in economics and studied bu....

Latest Blog Posts

Read This Before You Start Spring Cleaning

Spring has sprung, and that means flowers, sunshine, and hours of cleaning. For many people, spring cleaning is an annual tradition. Unless you happen to be an animated princess, you probably’

Read More

Mar 2 2018 53870 1

2 Months Down, 10 To Go: Revamp Your New Year’s ResolutionPosted on March 2, 2018 by TimHow’s your New Year’s resolution going?Be honest, did you have to stop and think

Read More

Top 5 Reasons To Hire A Real Estate Professional When Buying Or Selling

Whether you are buying or selling a home it can be quite the adventure, which is why you need an experienced real estate professional to guide you on the path to achieving your

Read More

Feb 13 2018 53870 1

As Paul McCartney sings, “Some people want to fill the world with silly love songs.” Well, this is certainly true around Valentine’s Day. Whether you’ve celebrated your 50th wedding

Read More