Throughout the current housing market, the prices of homes are rising at a pace that is slower than expected over the past eight years. More specifically, the prices of homes have increased at a total of only 3.7% as opposed to the previous total of between 6% and 7%. Despite all of this, however, these totals are still seen as being rather impressive in nature.
When it comes to being a homeowner, they believe that the new normal involves the annual home price appreciation being over approximately 6%. However, when someone is seeking to either sell or refinance their home, this is something that can become a real challenge due to the fact that the homeowner expects that the home itself should be worth a certain amount of money, that sometimes ends up not lining up with the appraisal amount that the bank comes up with.
The HPPI, or the Home Price Perception Index, releases a monthly report that measures the overall disparity that shows what a homeowner believes their home is actually worth, and what an evaluation from an appraiser reveals the home is actually worth. Throughout the span of five months, the overall gap between an appraisal from the bank and an opinion from a homeowner has increased to approximately -0.78%. This is a number that all homeowners should make note of because of the fact that even this amount of a difference in appraisal means that a buyer or seller will need to come up with thousands of dollars at the closing of a home that is being sold; however, this depends on exactly how much a home costs.
Thanks to the widening of this gap, another trend has become popular. More specifically, homes that ended up having their prices cut ended up increasing by around 2% in comparison to the previous year. In fact, a total of 37 out of 50 of the largest housing markets in the United States experienced an increase in housing price reductions.
Throughout today’s housing market, it’s always a good idea to seek out the services of an experienced real estate agent who will be able to assist you with correctly pricing your home prior to listing it for sale. If you fail to price it correctly and instead end up overpricing it, you will only end up having to drop the price as time goes on. As a result, buyers will end up wondering if the price drop was the result of there being something wrong with the house itself, when in reality, the asking price was simply too high to begin with.
By taking all of the proper steps to correctly price your home, you will be ensuring that not only will you be successful in selling it as quickly as possible, but also that you will be making sure that you get as much value for it as you possibly can. This makes it even more important to consult with an experienced real estate agent to help make sure that the process goes completely smoothly for both you and your buyer.
Thank you for taking the time to visit our blog, and we’re glad to have helped you learn more about what to know when pricing your home. We specialize in Corpus Christi real estate, and we also inform readers about what is up-and-coming in the Corpus Christi community.