Bank Appraisal on Home

Every Home On The Market Has To Be Sold 2 Times!

sold

Homeowners:  Your Home Must Be Sold TWICE!

That’s correct, every home on the market has to be sold 2 times, once to a prospective buyer and then to your bank (through the bank’s appraisal).  With home prices increasing, the 2nd sale might be even more difficult than the 1st.   Maybe your planning on jumping into the housing market sooner or later…  Well, sooner (now) remains a great time to sell and I’m going to tell you why —

 

In the current residential real estate market, where inventory is very low and demand is very high, property values are rising quickly.   Home values can appreciate by another 5%+ over the next year.   However, one major challenge a seller might encounter in this seller’s market is the bank appraisal.  Why is that?

 

The answer:  If prices are surging, it’s difficult for appraisers to find adequate, comparable sales (similar homes in the Bank Moneyneighborhood that have recently sold) to defend the selling price when performing the bank’s appraisal.  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 property is worth, as compared to an appraiser’s evaluation of that same home.

 

“While a 1 or 2% difference in home value opinions may not seem like a lot, it could be enough to derail a mortgage.  A homeowner (or a buyer) could be forced to bring more cash to closing in order to make a mortgage work if the appraisal is lower than expected.  On the other hand, if an appraisal comes in higher, they could be surprised with more equity than they had planned.  Either way, if owners are aware of their local markets it will lead to smoother mortgage transactions.”  (Bill Banfield, VP of Capital Markets at Quicken Loans)

 

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

Appraiser Home Values Chart

Let’s get together soon to discuss this and any other obstacle that might arise!

 

Common Real Estate Terms

The Home Buyer’s Glossary

Don’t let buying a home intimidate you… get familiar with the lingo used during the home buying process!  Your REALTORS® at NextHome Metro Group have compiled a list of some of the most common terms used when buying a home.  Be sure to bookmark this handy home buyer’s glossary for future reference!


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Congratulations Your Home Sold

Here’s Why You Should Sell Your Home TODAY!

If you are considering selling, you’ll wan to DO IT TODAY to take advantage of the current market.

The latest statistics from this year alone, to date, were astounding!

“Much of the country saw robust sales activity last month as strong hiring and improved consumer confidence at the end of last year appear to have sparked considerable interest in buying a home. Market challenges remain, but the housing market is off to a prosperous start as homebuyers staved off inventory levels that are far from adequate…”

– Lawrence Yun, Chief Economist for the National Association of Realtors (NAR)

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The popular & not so popular states to move to.

Where Are Americans Moving? (Infographic)

There was high outbound activity in the Northeast for the 5th year in a row!  Most of the moving can be attributed to Baby Boomers relocating upon retirement.

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