Over the past couple years, homeowners have typically had a slightly higher opinion of their homes’ value compared to what appraisers were reporting. However, according to a recent report from Quicken Loans, the gap between owner estimates and average appraised values has reached its narrowest point in 2017.
Quicken Loans’ National Home Price Perception Index (HPPI) found that during this past November, home appraisals were only an average of 0.67% lower than what homeowners expected. In addition, November marked the 6th consecutive month that this margin has narrowed, which is now at its smallest point since March of 2015.
“It’s encouraging to see opinions from homeowners and appraisers more aligned on a national level,” said Quicken Loans EVP of Capital Markets, Bill Banfield, in a recent press release. “Appraisals are one of the most important data points when applying for a mortgage. If an appraisal is lower than expected when refinancing, the homeowner will need to bring more funds to closing, or might even need the mortgage to be restructured. The more homeowners and appraisers agree, the smoother the process is.”
That said, the report did note that its findings were diverse across the country. For example, homeowners in Dallas are actually undervaluing their homes’ worth, while homeowners in Cleveland are still overvaluing the price of their homes compared to appraiser estimates.
To view Quicken Loans’ report in its entirety, click here.