Thursday, October 13, 2016 / by Vanessa Saunders
GPS always tries to get our sellers the best price that we can for their properties. But price is influenced by many factors, including market conditions, economic trends, and even political conditions such as the upcoming elections. In today’s housing market, appraising the value of a property can be difficult. One major challenge is the bank appraisal.
If prices are moving either up or down, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that closed recently) to defend the selling price when performing the appraisal for the bank.
Every month, Quicken Loans measures the disparity between what a homeowner believes their house is worth as compared to an appraiser’s evaluation in their Home Price Perception Index (HPPI). Here is a chart showing that difference for each of the last 12 months.
Every house on the market has to be sold twice; once to a prospective buyer and then to the bank appraiser). Especially 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, meet with an experienced GPS professional who can guide you through this, and any other obstacle that may arise.