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 for loan applications as a key part of their risk and compliance process.
How do AVMs help property professionals?
An AVM report can help in two ways:
1. It will help you to manage vendor expectations and will support your case when pricing properties appropriately for the market.
2. Similarly, when negotiating with prospective buyers, an AVM report can be used to support your asking price and range and will give them the confidence they need to purchase.
Supported by an AVM, you can reassure a prospective buyer that they:
- Are buying the property at a fair market price, and
- Can expect their lender will arrive at a similar value and therefore, are more likely to gain finance approval.
AVMs also offer an enhanced level of transparency which will help your customers to make informed decisions, faster.
To view a sample AVM report click here. For more information on AVMs visit rpdata.com, or to generate your own AVM report watch our online video.
Use the same AVMs that leading Australian banks use.
Three out of four major banks use AVM reports from RP Data. Leading agents state that due to current market conditions they are using AVMs for most of their vendors as an additional value add.
Call 1300 734 318 today to take advantage of AVMs.
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You’ve got to be kidding me! Turn up at someone home and say yes I’m a professinal and I canforecast the sale price of your home with $100,000 or more.. Whoopee! Don’t thinnk that my vendors are that stupid.
Hi Maureen,
Thanks for your comment.
Every Automated Valuation if different.
Automated Valuations include a forecast standard deviation to indicate our confidence in the value and range being displayed. If we are highly confident, the range can be quite tight in the vicinity of +/- $5,000 to $10,000.
On the flip side, it certianly is possible to also find AutoVals with a $100k range. But at the same time, we’ll always indicate a large FSD number, to let you know that we’re not confident in the number. The usual reasons for wide FSD / range Autovals include:
- Not enough recent sales or listings activity in the immediate vicinity of the property of similar properties to the target property.
- There are no attributes (bed/bath etc) recorded against the target property
- There is something quite unique about the target property making it stand out from surrounding properties.
- Where we’re unsure – an AutoVal will provide a wide range and a wide FSD
- Where we’re sure – an AutoVal will provide a tighter range and a lower FSD number
It’s also important to note that AutoVal Estimates are exactly that, an estimate using a mathematical algorithm based on a combination of surrounding sales and listing activity and the attributes of the target proeprty compared to that activity.
Autovals are a tool meant to assist and support agents and Valuers to make informed decisions. It is always up to the agent / valuer to apply their local knowledge and expertise to the assesment process.
I invite you to please run some AutoVals the next time you’re logged in to RP Professional and take a closer look for yourself.
More information on RP Autoval Estimates is available at:
http://www.rpdata.com/services/autoval_fusionval_and_rp_estimate_avm_reports.html
Kind Regards,
Lee