So – What Is an AVM?
Have you recently seen an estimated value for your home using CoreLogic’s RealAVM an automated valuation model (AVM) and wondered what it is?
Well, first, an AVM is simply a computerized estimate of your home’s value that a lender might use to begin determining its value. It includes nearby sales (“comparables”), property characteristics (such as number of beds and baths), and sales trends to arrive at a pretty close estimate of what your home is probably worth compared to others that are listed or sold nearby.
It’s Not Perfect
What isn’t it? It’s not an official appraisal of your home. That requires a trained professional to visit your home personally to determine what it uniquely has to offer. Do you live on a lake? Have you recently remodeled with new cabinets, carpets and paint? These extra touches certainly add value that AVMs can’t calculate, but overall an AVM is surprisingly accurate when you’re tracking the ongoing change to your home’s value.
If you want as close a sense of your home’s true value as possible, contact your real estate agent. That’s what they do for a living!
CoreLogic is the leader in supplying valuations to lenders, real estate brokers, agents, and consumers like you. The highly accurate RealAVM™ using CoreLogic’s extensive data resources and expertise to generate the most accurate estimated value. So, if you’re watching a home’s value with RealAVM, you can be confident that what you’re seeing is as close to accurate a reflection of your home’s value without someone knocking on your door to learn more!
It’s Good to Watch
You may have heard the term “Big Data.” It’s everywhere these days. It’s the idea that gathering, crunching and making sense out of huge stocks of data helps professionals do their jobs better and consumers see things they’ve never fully imagined. Well, CoreLogic AVMs are great examples of real estate “Big Data.” We put many statisticians and tons of computing power into coming up with your home value estimate! Here are a few things to know about CoreLogic AVMs:
Each month, over 1 billion AVMs values are provided to lenders, brokers, marketing firms and others
We supply AVMs to 18 of the top 20 U.S. mortgage lenders
We hold a patent on valuation modeling and two patents pending on related protocols
We have a global team of more than 50 PhDs, economists, modelers and residential appraisers creating AVMs
What If You Don’t Like Your Estimated Value?
Sometimes folks simply don’t like their reported estimated value provided by RealAVM – they think we’re really off. Remember, we don’t know everything about your home (we’ve never been there!) – so we can’t guarantee we’ll be right every time. But for a “Big Data” crunch and report, It’s a pretty good starting point. If you think your home’s value just isn’t right – call your agent. Get a sense on how different it Is from the CoreLogic AVM. Remember, your real estate agent is your local expert and can give you advice no computer model can match!