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Appraisals in April were, on average, 1.9 percent lower than what homeowners expected. That means on an average home price of $236,400, homeowners misjudged their price by about $4,500.
Read more: Will There Be Too Few Appraisers in 10 Years?
The gap between appraiser and homeowner views on price is spreading wider, according to the latest National Quicken Loans Home Price Perception Index. April marks the fifth consecutive month that the gap between price opinions has widened. In March, homeowners estimated their home prices were 1.77 percent higher than what appraisers said they were worth.
“The appraisal is one of the most important data points in a mortgage transaction,” says Bill Banfield, Quicken Loans vice president of capital markets. “This single number can impact how much money a buyer needs to bring to closing, or the equity that is available to the homeowner on a refinance. If homeowners have a grasp on home value differences, throughout their local area, it can lead to a smoother mortgage process.”
The study continues to show appraised values tend to be higher than expected in the West. On the other hand, appraisals were lower than expectations in the Midwest and East.
Source: Quicken Loans
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