Study: Owners Still Overestimate Their Home’s Value
Even though a majority of metros have higher appraisals than homeowners’ estimates, the overall average finds owners continue to think their property is worth a bit more than an appraiser’s estimate.
DETROIT – April 14, 2015 – Appraiser opinions of values were higher than homeowner estimates in 17 of the 27 metro areas (63 percent) measured by Detroit-based Quicken Loans.
Even though a majority of metros have higher appraisals than homeowners' estimates, the overall average finds owners continue to think their property is worth a bit more than an appraiser's estimate.
Home Price Perception Index (HPPI)
Nationally, appraiser opinions were lower than homeowner estimates by 0.40 percent in March. In February, appraiser opinions were only 0.13 percent lower than homeowner estimates.
This slight change in the national HPPI was consistent with most metro areas examined, nearly all of which saw little perception change from the month prior. Seventeen of the 27 metro areas analyzed are still seeing appraiser opinions higher than homeowner estimates.
Although the difference is minor, Tampa, Florida's HPPI value turned negative in March, meaning, on average, appraiser opinions are now greater than homeowner estimates.
"While the national HPPI shows appraiser opinions trailing those of homeowners, it is encouraging to see the gap at such a narrow margin," says Quicken Loans Chief Economist Bob Walters.However, "homeowners in a majority of the nation's largest markets can take solace in the fact that their home may have more equity than they realize."
For charts and background information on the HPPI, visit Quicken's website.
© 2015 Florida Realtors® All rights reserved. Reprinted with permission.
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