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Apara Leekha
312 967 6732312 967 6732

Gap Between Homeowners & Appraisers Narrows to Lowest Mark in 2 Years

In today’s housing market, where supply is very low and demand is very high, home values are increasing rapidly. Many experts are projecting that home values could appreciate by another 4% or more over the next twelve months. One major challenge in such a market is the bank appraisal.

When prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that recently closed) to defend the selling price when performing the appraisal for the bank.

Every month in their Home Price Perception Index (HPPI), Quicken Loans measures the disparity between what a homeowner who is seeking to refinance their home believes their house is worth and what an appraiser’s evaluation of that same home is.

In the latest release, the disparity was the narrowest it has been in over two years, as the gap between appraisers and homeowners was only -0.5%. This is important for homeowners to note as even a .5% difference in appraisal can mean thousands of dollars that a buyer or seller would have to come up with at closing (depending on the price of the home)

 

Bottom Line 

Every house on the market must be sold twice; once to a prospective buyer and then to the bank (through the bank’s appraisal). With escalating prices, the second sale might be even more difficult than the first. If you are planning on entering the housing market this year , let’s get together to discuss this.

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About Aparaha

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Apara Leekha

apara.leekha@gmail.com

312-248-6661312-248-6661 main

312 967 6732312 967 6732 office

Property Economics Inc

850 E Higgins Rd, Ste 125G Schaumburg, IL 60173

My Past Sales

Latest Real Estate

1110 Mercury Drive, Unit Number 2B

SCHAUMBURG, IL

  • 2 Beds
  • 1 Baths
  • -- sq ft
  • -- lot
  • $1,225

1344 Scarboro Road, Unit Number 705

SCHAUMBURG, IL

  • 2 Beds
  • 2 Baths
  • 1,900 sq ft
  • -- lot
  • $359,000

434 Plymouth Lane

SCHAUMBURG, IL

  • 4 Beds
  • 2 Baths
  • 1,131 sq ft
  • 11,586 lot
  • $284,500

205 Glasgow Lane, Unit Number V2

SCHAUMBURG, IL

  • 2 Beds
  • 2 Baths
  • -- sq ft
  • -- lot
  • $179,900