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AVM or Appraisal – Who Wins?

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"AVM or Appraisal – Who Wins?"

  1. Silvio A. Cinquino says:

    About 18 months ago, I applied for a HELOC loan, and the lender used an AVM to determine the value of my home. The AVM grossly undervalued my home by choosing one comparable near my home that was smaller and near a main road, then chose two other comparables based on the sales price of the first comparable. Fortunately, as a real estate appraiser, I recognized the flawed methodology and requested a full appraisal, which is another story. The concern is what if I was not knowledgeable of an appraisal as are most homeowners. So in order to save a few dollars, the HELOC lender could of lost out on the interest they are currently receiving on my HELOC loan. Cost cutting on the appraisal with an AVM is not, in my opinion, the most prudent or profitable manner of serving your client and doing business.

  2. Todd Brooks says:

    The real issue here is that we have been burned by this whole AMC issue. Let’s face it. Value Checks are for the most part gone, we often times get horrible appraisals, we have no relationship with the appraiser and the client pays for the appraisal. So it isn’t heartbreaking when we don’t need an appraiser. Sorry. . It has been a totally different industry with AMC’s. Point well taken to put an extra set of eyes on the house, but now you have to work a little harder with the home inspector you are paying real money to use, and to make sure your real estate agent knows and sees what they are doing.

  3. Backdoor to get rid of Dodd Frank. This is ludicrous! I have tried several AVM/RVMs to have an automatic valuation for homeowners. Yet to find one. My condo on the beach ran from $385-$700,+. Listed for $600. Some got the sq ft wrong another got #bathrooms wrong.

  4. Carrie says:

    The reason you get bad appraisals is because the AMC shops around for the cheapest appraisal, and let me say if you pay for the cheapest it is not always the best. This is not the appraiser’s fault but the way this is designed for the AMC to get their best fee, they use the cheapest and probably most inexperienced appraiser!

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