A recent study by Quicken Loans Inc. revealed a growing disparity between appraiser and homeowner opinions of home worth. While home values have generally increased from month to month over the past year, homeowners’ perceptions of home value have become increasingly inflated relative to appraiser valuations.
Homeowners’ Price Perception
In the study, the difference between homeowner estimates of home worth and appraiser valuations was measured using Quicken Loans’ Home Price Perception Index (HPPI). The HPPI was determined by comparing the difference between the homeowner’s estimated home value as listed on the mortgage application with the appraised value of the home.
Although the HPPI indicates that appraisals, on average, consistently exceeded homeowners’ estimates throughout 2014, appraiser opinions of home value fell from 0.40 percent to 0.69 percent below homeowner estimates from March to April.
Appraisers’ Valuation
The Quicken Loans study also compared the trends for HPPI to those for Home Value Index (HVI), which reflects only the appraised value of the home.
While the national HVI fell slightly in March, the HVI for April showed…
Read the rest of this article (and all my other articles) for free on Benzinga by clicking here
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!
