One of the Challenges of Appreciating Home Values

In today’s housing market, where the supply is low in most areas compared to the demand, home values have been increasing. Many experts predict that they could appreciate by another 4% over the next 12 months.

This is exciting news, but it brings up a major challenge in such markets—bank appraisals. When prices surge, it’s difficult for appraisers to find adequate, relevant sales to defend a home’s sale price in the eyes of the bank.

Each month, Quicken Loans’ home price perception index measures the disparity between what a homeowner thinks their house is worth and what an appraiser’s evaluation of that home is. The latest gap is the lowest it’s been in two years, with just a 0.5% difference. This 0.5% difference, though, can sometimes add up to thousands of dollars, depending on the home’s price.

What does this mean for you? It means now is a great time to sell. Remember, your home has to be sold twice—once to the buyer, and once to the bank.

If you’re interested in selling your home or you have any other real estate needs I can assist you with, don’t hesitate to reach out to me. I’d be glad to help you.