Many agents struggle to see the value of RP Professional’s Automatic Valuation Model (AVM) reports, preferring to use a Comparative Market Analysis (CMA) report or conduct their own research to come to an opinion or value. While this is a well-established way of engaging with customers and managing their expectations, AVMs can leverage RP Data’s entire property database with world-leading modelling techniques to generate actual valuation estimates. AVMs can empower prospective customers with the confidence needed to make large financial decisions.
What is an AVM and what does it do?
An AVM report provides an instant electronic valuation, valuation range and error range based on a property’s comparables, market conditions and recent sales history. Major banks use these reports across their portfolios and loan applications as a key part of their risk and compliance processes.
How do AVMs help agents?
If you know a property has the right pricing for its market, but are struggling with the indecision of one or two keen buyers, an AVM report substantiating your asking price and range can give them the confidence they need to purchase.
Supported by an AVM, you can reassure prospective buyers:
- “You’re buying this property at fair market price”
- “The lender will likely come to a similar value.”
- “You’re likely to experience fewer problems with your finance application.”
A ‘flip side’ use of AVM reports is to engage a vendor refusing to budge on an over-market price. To put the conversation in reverse: “Even if you get buyer interest at this price, the bank may not lend on it because of these low valuations”.
AVMs offer an enhanced level of transparency which helps your customers make confident decisions faster.
For more information on the AVM reports or any other aspect of RP Professional (such as the Market Compare Report), call us on 1300 734 318, or visit rpdata.com/training to sit our advanced real estate workshop, either online or in person.