Gap Between Homeowners & Appraisers Narrows to Lowest Mark in 2 Years

Gap Between Homeowners & Appraisers Narrows to Lowest Mark in 2 Years | MyKCM

In today’s housing market, where supply is very low and demand is very high, home values are increasing rapidly. Many experts are projecting that home values could appreciate by another 4% or more over the next twelve months. One major challenge in such a market is the bank appraisal.

When prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that recently closed) to defend the selling price when performing the appraisal for the bank.

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

In the latest release, the disparity was the narrowest it has been in over two years, as the gap between appraisers and homeowners was only -0.5%. This is important for homeowners to note as even a .5% 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 two years.

Gap Between Homeowners & Appraisers Narrows to Lowest Mark in 2 Years | MyKCM

Bill Banfield, Executive VP of Capital Markets at Quicken Loans urges homeowners to find out how their local markets have been impacted by supply and demand:

“Appraisers and real estate professionals evaluate their local housing markets daily. Homeowners, on the other hand, may only think about their housing market when they see ‘for sale’ signs hit front yards in the spring or when they think about accessing their equity.”

“With several years of growth, owners may have more equity than they realize. Many consumers use the tax season at the beginning of the year to reevaluate their entire financial life. It also provides a good opportunity for them to consider how best to take advantage of their equity while mortgage interest rates and borrowing costs are still near record lows.”

Bottom Line 

Every house on the market must be sold twice; once to a prospective buyer and then to the bank (through the bank’s appraisal). With escalating prices, the second sale might be even more difficult than the first. If you are planning on entering the housing market this year, let’s get together to discuss this and any other obstacles that may arise.

Bank of America Electronic Signatures Requiremen​ts

Memo from Bank of America:

Bank of America accepts electronic signatures on most documents collected throughout the processing of short sales; however there are specific requirements that must be met in order for the documents to be accepted.  If these requirements are not met the short sale process may experience significant delays and may result in the decline of the file.

Agents choosing to use e-signatures will need to check with their electronic service provider to ensure the below requirements can be met prior to initiating a short sale. Currently, DocuSign is one provider that has shown they have the capability to meet our security requirements. However, this should not be construed as an endorsement, or recommendation of their work, and agents and sellers should use their own best judgment in choosing a provider.

Requirement

Details

Certificate of Completion Serves as a receipt showing exactly who signed, how they signed and where the signing took place.

The Certificate of Completion must incorporate:

  1. IP Address of each signer
  • Disclosed Authentication/Security levels of e-signature user
    1. Knowledge Based Authentication (KBA) allows signers to validate their identity – ID check must have a passed result showing
    2. Email address exclusive to each user/signer on the signing platform
    3. Account Authentication (password, passcode, or access code)
  • Global Unique Identifier or ID number or Transaction number

To meet authentication requirements for e-signed transactions, all three items must be included on the Certificate of Completion on each e-signature transaction for any customer or authorized third party (user/signer).

Bank of America E-Transaction Consent Disclosure Form
  • The required E-Transaction Consent Disclosure Form can be found on the Agent Resource Center under the “Short Sale forms” section.
  • Each electronic signer must consent and agree. The Consent must be signed electronically for those that have signed the documents electronically.
  • All four pages are required and must be fully executed.

Any e-signature platform selected by an agent must comply with the above requirements in order for the documents to be accepted by Bank of America.  There are no exceptions to these requirements.  If the requirements are not met when documents are submitted at the time of initiation the documents will be rejected.