Home values continue to climb and areprojected to increase by about 5%over the next twelve months. That is great news for anyone who owns a home. However, it could present a challenge for a family trying to sell their house.
If prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that closed recently) to defend the sales price when performing the appraisal for the bank.
TheNational Association of Realtors(NAR) recently releasedinformationrevealing just how prominent the challenge is in today’s market.
And the challenge is deepening…
Every month,Quicken Loansmeasures the disparity between what a homeowner believes their house is worth as compared to an appraiser’s evaluation in theirHome Price Perception Index(HPPI). Here is a chart showing that difference for each of the last 12 months.
As we can see the difference has increased each of the last two months.
Every house on the market has to 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, meet with an experienced professional who can guide you through this, and any other obstacle that may arise.
Author:Salvatore Defrisco Phone: 561-644-0052 Dated: April 21st 2016 Views: 83 About Salvatore: ...
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