This past month saw an increasing likeness between appraisers’ and homeowners’ opinions of home values, according to 
Quicken Loans’ Home Price Perception Index. This shrinking discrepancy means that the process of buying a home is likely to become a lot smoother in the near future, because mortgage financing depends on whether the appraised value of the home matches the price agreed upon by the buyer and the seller. The fact that these amounts are becoming increasingly similar means less possible roadblocks interrupting real estate purchases for potential buyers and smothers refinances for current homeowners. Quicken Loans Chief Economist Bob Walters says it is “reassuring to see the gap between appraiser opinions and homeowners opinions” shrinking, and most predict this trend will help to streamline the process of buying or refinancing a home.
As of now appraisers values tend to be an average of 1.56 percent greater than homeowners, which economists feel is the preferred pattern of disagreement. Typically, when the appraisers assessment of the home’s worth is higher than the homeowner it makes for a smoother mortgage negation, so even if the numbers can’t match perfectly this unbalance is better than the alternative. This trend of higher assessment of value from appraisers is evident in three-quarters of the metro areas evaluated by Quicken Loans, although the amount of discrepancy varied.
Across the country real estate brokers are seeing fewer deals being disrupted by appraisal disputes, which gives people less reason to hesitate when thinking about buying a home.
More fluid mortgage negotiations combined with the growing health of the real estate market make now the perfect time to check out all the different types of listings available. If you are considering a residential or commercial property in the South Beach area, or would like to know more about the mortgage financing process, contact a RE/MAX agent today and we would be happy to help with whatever you may need!