The Appraisal vs. Expectation gap

Appraised Values Remain Slightly Lower Than Homeowner Expectations, According to Quicken Loans Study

— Nationally, appraised values were an average of 1.87% lower than homeowner expectations.

— Gap between appraisal and owner estimates narrow for the third consecutive month.

— Home values rose 1.08% in November, 4.54% from a year prior, according to national HVI.

Quicken Loans, the nation’s second largest retail mortgage lender, today announced the average appraisal in November was 1.87 percent lower than the value the homeowner expected, according to the company’s national Home Price Perception Index (HPPI). The difference between the values was slightly higher in October, making November the third consecutive month the gap between values have narrowed. Overall, November marks the 10th straight month homeowners’ expectations of their home’s value exceeded the appraisers’ valuation, according to the national index.

The nation’s average home values continued to rise in November according to Quicken Loans’ national Home Value Index (HVI). Appraised values rose an average of 1.08 percent since October, and have increased 4.84 percent year-over-year.

Be sure to contact me if you would like to see what YOUR home could be worth in todays market.