Homeowners in the West may be underestimating the value of their home

Homeowners believe their homes are just slightly worth more than they are, according to new data. From a national perspective, appraiser opinions of home values were 2 percent lower than homeowner’s views in September.

According to data from Quicken Loans, this represents the eighth month in a row that homeowner estimates exceeded those of appraisers.

“It may not seem like homeowners assuming their home’s value is 2 percent higher than appraisers’ opinions is significant, but it could make a huge difference in metro areas with higher average home values,” said Bob Walters, chief economist for Quicken Loans.

It could also cause complications for homeowners who are close to loan-to-value refinance thresholds or are looking to eliminate mortgage insurance.

While appraiser opinions are overall lower than those of homeowners, markets exist where the opposite holds true. A number of these markets are located in the West.

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San Jose and San Francisco are cited as the two markets where appraiser opinions are noticeably higher than homeowner perceptions, by 5.74 percent and 4.67 percent, respectively.

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In Denver and Portland, appraiser opinions are 4.4 percent and 2.36 percent higher than homeowner estimates.

Los Angeles (1.41 percent), Riverside (1.16 percent) and Sacramento (1.12 percent) represent additional California markets where appraisers value homes more than owners.

Homes in two Texas markets, Houston (2.9 percent) and Dallas (2.68 percent), are also valued more by appraisers.

On the flip side, there are four markets where homeowner perceptions are more than 2 percent higher than those of appraisers:

• Philadelphia, 3.58 percent
• Kansas City, 2.95 percent
• Chicago, 2.52 percent
• Charlotte, 2.09 percent

Email Erik Pisor.