Borrowers often times over estimate the value of their homes and property. This can cause problems for loan production staff trying to structure potential loan offers. Our Valuation Tools can assist in determining if a borrower has enough equity in their property, or whether a properties' sales price is an accurate reflection of its market value.
Automated Valuation Models (AVM's) generate values based on analysis of comparable sales, market trends, and public records data. They typically return a value range for the subject, as well as the sales price and location of recent sales. The primary advantage of an AVM is its speed and efficiency. However, AVM's often do not take into account the condition of the subject or recent sales, as well as external factors. In addition, AVM's rely on public records sources, which are frequently outdated and inaccurate. Even with these limitations, AVM's can be a valuable tool for loan originators when pre-qualifying prospective borrowers.
RealEstate abc Home Values
Eappraisal Online Value Estimator
Yahoo Real Estate Online Value Estimator
Real Estate Listing Sites
Real estate listing sites prove to be a valuable tool when used in conjunction with public tax assessment data. Real estate listing sites utilize multiple listing service (MLS) databases of current real estate sales. The amount of information provided varies. Some sites can offer national or regional information.
Viewing what similar properties in a subject’s market area are listing for may assist in determining a value range for a prospective borrowers' home. This is done by comparing known data about the subject obtained from the Borrower and Public Records, compiled with data regarding comparable listings acquired from one of the public sites below. The tools offered can help you determine an accurate value range.
Utilizing tax assessment amounts can also be helpful. Similar properties may have widely differing tax assessments. This can be a sign that there are some major differences between the properties which may not be immediately apparent.
Another factor to consider is if a property has been on the market for a long period of time. This can translate that it's overpriced, or there may be other adverse factors to consider. Finally, it should be noted, that real estate listing sites reflect a properties current listing price. Often times there is a difference between what a property lists for, and what it ultimately sells for.