I recently helped my clients handle multiple offers on their home, and one of the issues that came up was the appraisal. My clients, the Sellers, were requesting that the potential Buyers waive the appraisal contingency and the Buyers resisted.
While I do resear
ch properties extensively for market value price points, with multiple offers the actual sale price can be considerably above the asking price, making the appraisal value critical for a buyer expecting to finance their home purchase.
Each month, Quicken Loans
releases their national Home Price Perception Index
(HPPI). This month’s report revealed that the difference in appraiser home value opinions as compared to homeowner estimates is continuing to increase.
Chief Economist Bob Walters explains:
“Many homeowners around the country are seeing the national headlines about home value increases and they are optimistic about their equity increasing. While some areas are seeing the same level of home appreciation, or even more, there are also some areas that have slower home value increases. This can lead to homeowners and appraisers not quite seeing eye-to-eye.”
Here is a chart showing the increasing difference in opinions:
Though reports of home price increases have garnered many headlines over the last six months, most experts expect residential real estate values to start showing more historic levels of appreciation over the next five years. Walters addressed this issue:
“A slowing of home value increases adds to the misunderstanding of local home values. Appraisers are viewing the housing industry every day; they know when home values growth may be slowing. Homeowners may think values are still skyrocketing, when they have instead returned to more healthy appreciation in their area.”
When pricing your home, you should have a real estate professional help you fully understand where prices are and where they are headed in the future.. and, I can do that with you! Call me and let’s talk about your plans.