A word on the AVM.
AVMs or Automated Value Models have been popular in the lending world over the past few years and the internet has many a service which states that it can render a value for a property. These services can be very helpful to those who need to survey data on neighborhoods for ranges of value and users statistical requirements.
However, let the consumer beware; AVMs are not appraisals. Those who compile them are not following proper appraisal adjusments and procedures and in no way do they subscribe to the rules or guidelines for appraising as laid out by federal law or mortgage associations. Because of this, they are held to no scrutiny for quality of their data or their work. These compliers never went inside your home; didn’t measure it, nor saw your new carpet and new paint or the lack thereof.
So remember, AVMs are only as good as you can throw them…and at my age, that isn't very far.
Thomas M. Ponce
I am Houston Real Esate Appraiser for The Ponce Group, a Houston Appraisal company.