​Are you overestimating your home value?

[Dustin Ruhl]

Homeowners all across America wonder how much their home is worth. A new trend discovered by Quicken Loans, and their National Home Price Perception Index, has many homeowners estimating their homes higher than they are actually being appraised at. What is the cause of this trend? One word, neighborhood. Many Americans believe their home is worth more than it is, and a large part of this has to do with the neighborhoods they are in. On average a homeowners believes their home is worth about 1.69% more than their home is actually being appraised at. Bill Banfield, the vice president of capital markets for Quicken Loans, says that a customer will tell them what they believe their own is worth at the start of the mortgage process. Once the home is appraised, Quicken Loans will then compare the data. The trend began in February 2015, and has just been increasing every month. In Denver, homeowners are, on average, overestimating the value of their home by three percent. Banfield is hoping that consumers will take advantage of this information, so they have a better understanding of what their home is actually worth. So remember when buying or selling a home, it is all comes back to location, location, location.

Key Takeaways:

• Homeowner estimates of their property’s value remains above the appraised value in some areas.
• In some metro areas, homeowners estimates of their property’s value are actually below the appraised value.
• Low levels of home inventory persists as the main driver of home value growth.

"Homeowners tell us what they think their home is worth at the beginning of the mortgage process, then we compare that with the appraiser’s opinion of value."

Read more: http://www.housingwire.com/articles/39568-are-you-overestimating-your-home-value