Saturday
December 10, 2016

Owners Still Overvaluing Homes vs. Appraisals

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Owners Still Overvaluing Homes vs. Appraisals

Home owners are still slightly overvaluing their homes compared to appraisers' estimates, according to the latest Quicken Loans Home Price Perception Index. In December, average appraised values were 1.8 percent lower than home owners' opinions of their homes' values. That marks the 11th consecutive month where appraised values were lower than home owners' expectations — but the gap is narrowing.

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Appraisals were higher in cities in the West, while home owner expectations were higher than appraised values in many Northwestern and Midwestern cities.

"The narrowing of the perceived-versus-appraisal value gap is an excellent way to end the year," says Quicken Loans Chief Economist Bob Walters. "The more home owners are in line with appraisers and understand the equity in their home, the easier it will be to refinance their mortgage. In the same vein, if home buyers understand how the local market is performing, they will be better equipped to come in with a strong offer on the home of their dreams."

Source: Quicken Loans