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...

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