2 Things You Need To Know To Properly Price Your Home

Dated: May 28 2019

Views: 67

In today’s housing market, home prices are increasing at a slower pace (3.7%) than they have over the last eight years (6-7%). However, they are still are above historical norms. Low supply of listed homes and high demand from buyers has pushed prices to rise rapidly.

In the mind of the homeowner, annual home price appreciation over 6% has become the new normal. This becomes a challenge when a homeowner looks to refinance or sell their home, as the expectation of what the homeowner believes the home should be worth does not always line up with the bank’s appraisal.

Every month, the Home Price Perception Index (HPPI) measures the disparity between what a homeowner seeking to refinance their home believes their house is worth and what an appraiser’s evaluation of that same home is.

Over the last five months, the gap between the homeowner’s opinion and the bank’s appraisal has widened to -0.78%. This is important for homeowners to note, as even a 0.78% difference in appraisal can mean thousands of dollars that a buyer or seller would have to come up with at closing (depending on the price of the home).

The chart below illustrates the changes in home price estimates over the last 12 months.

2 Things You Need to Know to Properly Price Your Home | MyKCM

While the appraisal gap widens, another trend is also becoming more common.

According to realtor.com, “the share of homes which had their prices cut increased by 2% compared to last year”. Thirty-seven out of the 50 largest US housing markets saw an increase in overall price reductions.

In today’s market, you need an expert agent who can help price your house right from the start. Homeowners who make the mistake of overpricing their homes will eventually have to drop the price. This leaves buyers wondering if the price drop was caused by something wrong with the house. In reality, nothing is wrong- the price was just too high!

Bottom Line

If you are planning on selling your house in today’s market, let’s get together to set your listing price properly from the start!

#relocation #boise #boiseidaho #boisehomes #firsttimehomebuyers #homeownership #buildingwealth #blakeonboise #alisonblakegroup

Latest Blog Posts

What Do Supply And Demand Tell Us About Todays Housing Market

What Do Supply and Demand Tell Us About Today’s Housing Market?There’s a well-known economic theory – the law of supply and demand – that explains what’s happening with prices in the

Read More

Whats Causing Todays Competitive Real Estate Market INFOGRAPHIC

What’s Causing Today’s Competitive Real Estate Market? [INFOGRAPHIC]Some Highlights Today’s strong sellers’ market is the direct result of high demand and low supply. &

Read More

111285 Reasons You Should Buy A Home This Year

111,285 Reasons You Should Buy a Home This YearThe financial benefits of buying a home versus renting one are always up for debate. However, one element of the equation is often ignored – the

Read More

As Home Equity Rises So Does Your Wealth

As Home Equity Rises, So Does Your WealthHomeownership is still a crucial part of the American dream. For those people who own a home (and those looking to buy one), it’s clear that

Read More