Automated Valuation Models (AVM)
A number of math-based
computer valuation models have become prominent on the Internet over the past few years.
We accept them as being useful for some purposes, however single-family residential clients call
us and ask why the AVM they used has produced a value for their home that differs from the opinion
that was concluded by an appraiser. It is important to note that
AVM's can not and do not claim a high degree of accuracy. Some
sources have noted that many of the models are within the plus or minus
models also lack information about
set-backs, subdivision aesthetics and appraisers are not permitted to
discuss things like graffiti or crime. Nothing on the standard URAR appraisal
form considers how good or bad
the layout / floor plan is, only if it is "functional." In fact there are a number of details that an appraiser would consider when
completing an appraisal assignment that just don't get into the report. That's
one of the reasons why appraisals
are considered to be somewhat subjective in nature. Some of the factors that sell one home and see another sit on the market
for months and months are simply not discerned by an AVM model.
Contact us with your questions or concerns regarding AVM's or regarding your specific appraisal assignment in Nevada at 1-702-568-6699. We can also be e-mailed at firstname.lastname@example.org.
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Commercial Real Estate Appraisals in the Las Vegas & Henderson, Nevada Area.