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The disconnect between homeowner estimates and appraiser opinions when it comes to home values grew for the second consecutive month, according to Quicken Loans’ National Home Price Perception Index. The average appraisal value was 1.47 percent below what owners expected in January.
The shift comes after a six-month stretch where homeowner and appraisal value perceptions were moving closer to equilibrium.
“Having a good understanding of the conditions in their local housing market can be a valuable tool for consumers as they prepare for the home buying or mortgage process,” says Bob Walters, Quicken Loans’ chief economist. “Accurate expectations at the onset of the mortgage process not only makes it smoother, but can prevent unexpected changes in the amount of funds to bring to the closing table if the appraised value comes in lower than initially estimated.”
The perceptions of home prices between owners and appraisers differs greatly across the country. For example, appraisals in Western cities tended to outpace owner expectations. In Denver, appraised values were 2.98 percent higher than homeowners’ expectations. On the other hand, estimates in many eastern cities tended to be higher than appraised values. For instance, in Philadelphia, appraisals were 2.94 percent lower than homeowners’ estimates.
Source: Quicken Loans
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