Homeowners continue to say that their homes are worth more than appraisers’ opinions, according to the latest reading from Quicken Loans’ National Home Price Perception Index. Consumers believed their properties to be worth 1.55 percent more than what appraisers said they were in July.
That said, the gap is narrowing between these differing opinions. In June, homeowners’ estimates were 1.7 percent higher than appraisers’ opinions.
There are some regional differences in price expectations. In some of the fastest growing housing markets, such as Dallas and Denver, appraisal opinions are coming in higher than homeowners’ expectations.
“The home appraisal is one of the most important data points in the mortgage process,” says Bill Banfield, Quicken Loans executive vice president of capital markets. “It determines the level of equity the homeowner has and, if the owner’s estimate is too far from how the appraiser views the property, it can cause the mortgage to be restructured. Our hope is that this index is eye-opening for homeowners. Their home equity could be thousands of dollars higher, or lower, than they realize. If they are aware of the perceived trends in their area it could help them better prepare for their home purchase or refinance.”
Source: Quicken Loans
