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!

 

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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Housing Inventory Shortage

Low Housing Inventory is Still Posing a Challenge

The housing crisis of the past is finally in dissipating as the real estate market moves down the road to a complete recovery.  Home values are up, home sales are up and distressed sales (foreclosures and short sales) are at their lowest mark in almost a decade.  This year has been great for real estate and it will continue.

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Have Buyers, Homes Needed

Now Is a Great Time to Sell!

We all realize that the best time to sell anything is when demand is high and the supply of that item is limited. The last two major reports issued by the National Association of Realtors (NAR) revealed information that suggests that now continues to be a great time to sell your house. Let’s look at the data covered by the latest Pending Home Sales Report and Existing Home Sales Report.

THE PENDING HOME SALES REPORT

The report announced that pending home sales (homes going into contract) are up 2.4% over last year, and have increased year-over-year now for 22 of the last 25 consecutive months. Lawrence Yun, NAR‘s Chief Economist, had this to say:

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