Date Archives: November 2017

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buying a home | 94 Posts
mortgage | 3 Posts
real estate news | 44 Posts
selling a home | 28 Posts
Uncategorized | 8 Posts
November
28

 

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 5%+ over the next twelve months. One major challenge in such a market is the bank appraisal.

If 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 an appraiser's evaluation of that same home.

Bill Banfield, Executive VP of Capital Markets at Quicken Loans urges anyone looking to buy or sell in today's market to remember the impact of this challenge:

"Based on the HPPI, it appears homeowners in the markets where prices are rising faster than the national average – like Denver, Seattle and San Francisco – are continuing to underestimate just how quickly home values are rising, so the average appraisal is higher than homeowner estimate.  On the inverse of that, homeowners in areas where the values aren't rising as fast may think they are rising faster than they are, leading to the appraisal lagging the estimate."

The chart below illustrates the changes in home price estimates over the last 12 months.

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, your experienced Montague Miller & Co REALTOR® will be able to guide you through this and any other obstacles that may arise.

November
5

You decide the time is now to buy your first home. You have heard time and again it's better to start building equity in your home instead of renting year after year. So, what's the next step?
 
You may be closer than you think!  Besides being confident that this is the time to move forward, first learn what you need to know about the Mortgage Process:
  1. What you will need to Qualify in Today's Market
  2. What Steps to Take