Home Prices Are Up…but there is a Challenge

If home prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that closed recently) to defend the sales price when performing the appraisal for the bank.

The National Association of Realtors (NAR) recently released information revealing just how prominent the challenge is in today’s market.

And the challenge is deepening…

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.

As we can see the difference has increased each of the last two months.

Bottom Line

Every house on the market has to be sold twice; once to a prospective buyer and then to the bank or lender (through the  appraisal). With escalating home prices, the second sale might be even more difficult than the first. If you are planning on entering the housing market (in NW Houston, Cypress, Katy, Spring or Tomball TX) this year, let’s meet up and I'll guide you through this, and any other obstacle that may arise.

Connie