Owners, Appraisers Disagree on Home Values

We thought you may be interested in this timely study. It mirrors what we’re currently experiencing in this low inventory market – appraisals not matching contract prices. Appraisers are indeed astute and almost always get it right, or photo finish close. Debbie and I understand that but when it comes to selling our own beautiful homes we, too, are financially and emotionally invested and sometimes appraisals don’t reflect our expectations and hopes.  Like all of you, we would like to sell high and buy low in the same market but….  As it turns out comparable numbers are often the sober grounding reflecting fair market value. While appraisers are human and their findings can be off a bit (either way) it’s usually only a bit. So, you may want to better balance your expectations and read through the below concise article. It will mitigate some selling stress, and when you decide to sell do what we do, both personally and professionally: Always ask the highest, always negotiate the highest, and while waiting for the appraisal, always pray!
Call anytime to discuss low cost, no cost, tweaks & nudges that’ll help you achieve, when selling your home, the most value the market will bear  After all, isn’t that the best we can honestly expect!?!  Paul (and Debbie)
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Owners, Appraisers Disagree on Home Values

A study found that owners and appraisers still disagree over the value of their home, but the gap between the two valuations grew again in April as owners grew more optimistic.

According to Quicken Loans’ latest Home Price Perception Index, homeowners overestimate the value of their homes by 0.69 percent compared to appraisers’ values. It’s the third consecutive month in which appraiser opinions fell below homeowner estimates.

“While it is not surprising to most appraisers that homeowners are overestimating their home’s value on a national average, we should always make note of the direction the trend is heading toward, to help set expectations for home buyers and those looking to refinance,” says Quicken Loans Chief Economist Bob Walters. “There is nothing more disappointing to a homeowner than learning that the value of their home is less than they expected.”

The index finds that appraisers’ opinions were below homeowners’ in the Northeast (0.58 percent), South (0.7 percent), and Midwest (1.23 percent). In the West, however, appraiser opinions were 0.08 percent higher than homeowners. That was also true in metro areas such as San Jose, where appraiser opinions were 6.73 percent higher than homeowners, San Francisco (5.47 percent) and Denver (4.09 percent).

On the other hand, homeowners in Kansas City, Mo., tended to overestimate the value of their homes by the most in the country – 2.96 percent – compared to appraisers’ values, followed by Philadelphia (2.02 percent) and Charlotte, N.C. (1.4 percent).

Source: “Quicken Loans Home Price Perception Index Shows Further Gap Between Appraiser and Home Owner Value Opinions,” Quicken Loans (May 12, 2015).  Daily Real Estate News © Copyright 2015 INFORMATION, INC. Bethesda, MD (301) 215-4688