For the fourth consecutive month, the gap between homeowner and appraiser opinions on property values narrowed. Still, homeowners tend to believe their homes are worth more than appraisers do.
In September, homeowners’ opinions on home prices tended to be 1.14 percent higher than appraisers, according to the latest National Quicken Loans Home Price Perceptions Index.
There is a fair amount of variation in price perceptions across the country, however. For example, in Dallas, appraisals were, on average, 2.87 percent higher than homeowners’ expectations. However, in Philadelphia, the average appraisal was 2.89 percent lower than what owners thought it should be.
“An appraisal can vastly impact the mortgage process,” says Bill Banfield, Quicken Loans’ executive vice president of capital markets. “This number alone can impact how much a buyer needs to bring to closing, or the current equity a homeowner has when refinancing.”
Source: Quicken Loans