Home prices are up and they continue to climb. They projected to increase by about 5% over the next twelve months. That is great news for anyone who owns a home. However, it could present a challenge for a family trying to sell their house.
If 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.
Home Prices Are Up
Appraisals Causing Delays and Cancellations
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).
Every house on the market has to be sold twice; once to a prospective buyer and then to the bank (through the bank’s appraisal). 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 professional who can guide you through this, and any other obstacle that may arise.
March 30, 2016 Snapshot
The above represents the home prices are up versus those that are down by way of a state by state comparison. When looking at these state comparisons keep in mind that home values are geographically specific. This means you need to talk to the REALTOR® in that city to verify the market values of the house you want to call home.
Selling Your Home for the Best Return On Investment
For a smooth transaction that garners the most possible profit from your sale, avoid these eight common, and costly, home seller mistakes.
- Skipping a home inspection. Depending on the age of your home, scheduling a pre-listing home inspection could save you a lot of time and aggravation. You can address issues on your own time and budget before negotiating with a buyer to fix problems.
- Overpricing your home. If you’ve hired the right REALTOR®, someone who can give you a strong market analysis and help you determine a reasonable price for your home, then you can avoid overpricing your home. If you don’t listen to a REALTOR® and base your listing price on an inflated view of your home’s value, you’re likely to end up selling after multiple price drops for less than you would have if you priced it right the first time.
Article: Home Prices Are Up
Brought to you by: Luxury Valley Homes Scottsdale
Jane E. Daley, REALTOR®