Home values are rising in many U.S. markets, including Central Indiana. Nationally, the S&P/Case-Shiller Index has home values up 1.2 percent as compared to last year, and the government’s Home Price Index shows an increase of 3.7 percent.
This has resulted partially by rising median home sales prices nationwide. Versus last year, the median sale price of a new construction home has climbed 17 percent, and the median sale price of an existing home sale is higher by 10 percent. The median home price for our area has increased 4.2 percent compared to last year, which is a great sign for the Indianapolis and Central Indiana real estate markets.
For home sellers, an improving market means the chance to net more proceeds from a home sale. Or does it? Pushing your neighborhood values higher isn’t as easy as you may think, although it can definitely be done with the proper approach.
In this 3-minute piece from NBC’s The Today Show, we hear about the home appraisal process and how it may be limiting the number of home sales nationwide, plus the prices at which homes are selling.
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The interview includes several key insights into the home appraisal process :
- In a rising housing market, a home’s appraised home value may be lower than its “true” market value
- Short sales and foreclosures can make a negative impact on a home’s appraised value
- Consolidation in the appraisal industry has lowered product quality and may be harming valuations
One key take-away from the video is that home owners in Indianapolis should provide their home appraisers with as much relevant information as possible — especially information which may not be publicly-available. This includes records of recent “all-cash” sales of comparable homes which were never formally listed for sale.
If we think the numbers are going to be close, have your agent pull comps used when your home was put on the market, including any new listings that may help the value. This is all information the appraiser will have access to, but it never hurts to leave them at the property for an easy reference.
One in three purchase agreements are canceled because of appraisal issues, according to the interview. Take steps to make sure yours is not among them. Proper pricing is key, especially in this ever changing (and improving) real estate market, making your choice in Realtors that much more important.