In today’s CT housing market, where supply is very low and demand is very high, home values are increasing rapidly. Many experts are projecting that CT home values could appreciate by another 5%+ over the next twelve months. One major challenge in such a market is the bank appraisal.
If prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that closed recently) to defend the selling price when performing the appraisal for the bank.
The disparity between what a CT homeowner believes their house is worth as compared to an appraiser’s evaluation is shown below highlighting difference for each of the last 12 months.
Bottom Line
Every house on the Connecticut market has to 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 CT housing market this year, meet with an experienced professional at Dave Jones Realty who can guide you through this, and any other obstacle that may arise.