The gap between appraised value and homeowner price expectations widened in January, the first time in eight months. Quicken Loans’ Price Perception Index showed appraisers valued homes an average of 0.6 percent lower than what homeowners estimated. The difference seems slight but, on an average-priced home, it could mean a couple thousand dollars’ difference from sellers.
“The appraisal is one of the most important pieces of data in the mortgage process,” says Bill Banfield, Quicken Loans executive vice president of capital markets. “If the appraisal is lower, it could mean the homeowner needs to bring additional cash to close or the loan may need to be reworked. It’s very promising to see the homeowner estimate and the appraiser opinion so close together.”
View the following chart to see the differences between appraised value and homeowner expectations in a handful of the nation’s largest cities:
Source: Quicken Loans
