About AVM’s

About AVM’s

7 facts an automated or non-appraiser valuation won’t tell you. Lenders and brokers using Automated Valuation Models (AVMs) and homeowners using “free online home values” to discover the value of a property should be aware of just what those results aren’t telling them. Whether the house is really there. A computer can’t so much as drive by a house to see if it’s actually situated where it’s said to be, has four walls and a roof, and really is a four bedroom split level rather than a one bedroom shack. Whether or not unique attributes of a property might add to or detract from market price. So a computer produces an approximated property value of $150,000. Did it take into account the sewage treatment facility next door? The railway tracks nearby with trains that blow their whistles each night? The school district? The desirability of its tree lined street versus the next street over? How long ago the house was assessed. Many AVMs and free internet services depend on public assessment records. In many states, for instance, assessments might only be required every several years — the value may be practically three years old in that case. A few states require that an assessed value not enhance beyond a certain percentage, even if sales activity suggests the house or property has appreciated much more. When using an AVM or free online service, you risk a lesser value than reality. What makes the comparables comparable. A computer will probably contrast your subject property to some other property with similar square footage sold 3 months ago a quarter of a mile...
Are Cheap Appraisers Worth the Risk?

Are Cheap Appraisers Worth the Risk?

If you haven’t worked with an appraiser in the past, you might not realize that all appraisers are NOT the same and can be as different as day and night based on his or her knowledge, education, and familiarity with your region. Anyone who’s experienced an appraiser horror tale (there are lots of them) mainly because they hired the cheapest appraiser will tell you it’s just not worth the risk. So don’t wait on your own horror story to be a learning experience and wake-up call when hiring an appraiser in your case. It is often easy to get lured by those low cost appraisers. It seems like merely a formality anyhow. Nonetheless, when it comes to hiring a professional appraiser for such an important job just remember that , you often get what you pay for! It is certainly not really worth trying to save $50 on the cost of an evaluation where there is a high probability you may not be given the quality report you are entitled to if your main hiring determination was simply to go with the least expensive appraiser. So when it comes to working within your budget, don’t pick an appraiser simply to save a few bucks because it may set you back a great deal in the long run. There are ways to help ensure you’re employing a quality appraiser. For starters, you should ask for recommendations from people you know and count on or from established real-estate professionals within your market area. You can even look online for appraisers that come up repeatedly and begin your research from there. In...