AVM Appraisal an Option for a Fast Evaluation
Using AVM technology, you can get a quick appraisal of the value of a property you’re interested in, which can be helpful if you are trying to stick to a particular budget when you’re in the market for a house. However, there are some pitfalls to be aware of, and reasons why you should back up that information with further appraisals.
1. An AVM is an online service that relies on mathematical modeling – the house is not inspected in person, so the valued amount is a comparative estimate.
2. Without an actual inspection, it is impossible to include all factors that may add to or detract from the market value of the property.
3. You have no benchmark for when the property, or any others used in the comparison, were originally assessed, so the figure you receive may be based on outdated information.
4. Comparisons are limited to basic information and don’t include details of why particular properties sold for the prices they did, which could skew the data.
5. The state of the market may not be reflected in the appraisal.
6. You might have no way of investigating the qualifications of the personnel behind an online appraisal as you do with a qualified appraiser who will do a visual inspection.
While an AVM appraisal might be appropriate in some circumstances, at other times you may need the services of a licensed appraiser.