If you’re staying in touch with the average price of a home lately, you may have noticed that home prices are still increasing but not as fast. Now, home prices are increasing at 3.7% where they have been as much as 6-7% over the last eight years. No matter what, 3-7% is still much more than what history shows.
Many homeowners see 6% as the normal amount their home increases in value each year and this has become somewhat of an expectation. Obviously, this can be an issue when the homeowner looks to refinance or sell their home. The appraised value or offer from the buyer could be a surprise…and not the good kind.
There are tons of data points available publicly to keep up with home values, trends, neighborhood comparisons, etc. Some show a widening gap between the appraiser’s lower value and the homeowner’s higher opinion. As this difference nears 1%, that could equate to several thousand dollars. Others reports show most of the largest housing markets in the US with an increase in the number of homes that have sale prices cut. This can make buyers think the home had a problem when in reality, the home was not priced right.
Bottom Line: No matter what, for you as a homeowner, your transaction will always be unique to you and your timing. It’s extremely easy to find realtors and lenders that will put you on the assembly line of real estate and wait for a commission check when you spit out the other side. The best recommendation will always be to work with a true professional who hand makes every part of such a large financial transaction completely custom fit to you. #TMP
