An AVM is a computerized modeling system designed to simulate the traditional appraisal process and provide residential-only property valuations at a specific point in time by analyzing values of comparable properties. "AVM" is the acronym for Automated Valuation Model. AVMs formulas are mathematical and based upon numerous factors including data quality, real estate fundamentals and complexity of the underlying technology. AVM reports may have some of the same data found in traditional property reports, yet they are not considered to be as such and should not be generated for that purpose. AVMs, unlike most other real estate filings are not public record.
Numerous statistical methods have been applied to index estimation and property valuation in the United States. Selection of a particular methodology has depended largely on the available data, and as data quantity and quality have improved so have the estimates.
Released about 2 decades ago, ValuePoint®4 has continued to progress as the superior automated valuation model (AVM) of choice. Our newly released next generation ValuePoint4 combines two independent valuation systems coupled with a continuous hi-tech testing process to deliver greater precision and hit rate. This latest model with its improved relevancy outperforms traditional single system models. The types of valuation methods contained in ValuePoint4 include: hedonic, repeat sales indexes and a patented neural networks technology.
The hedonic method of property valuation recognizes that housing is a composite good, and defines value as a mathematical function of its characteristics. Hedonic methods can be applied to estimate the value of new or existing homes, and observations on value may be actual sales prices, listing prices, appraisal values, or even owners' estimates of housing values.
Repeat-sales methods use the observed sales prices of the same properties at different points in time to create a sample of price differentials that can be used to estimate the appreciation rates of houses.
Artificial neural networks attempt to emulate the process by which the human brain converts external stimuli (inputs) into specific responses (outputs) via neurons and synapses. When applied to property valuation, the inputs are the explanatory or independent variables, such as location and property characteristics, and the output is the dependent variable, in this case the property value. Valuations based on these systems can be used to supplement or is some situations entirely replace human appraisals.
Since our electronic AVM utilizes a combination of hedonic and repeat-sales house price indexes and neural networks to generate estimates of property value, the systems generated estimates are believed to have the smallest possible error. Based upon millions of observations of continuous rigorous testing, ValuePoint4 incorporates an extremely accurate neural scoring system that adapts to changing market conditions.
The logic behind the ValuePoint®4 Report: to provide instant and accurate online Valuation Report for a residential property. AVMs are used to determine what a residential property might be worth at a given time. The advantages of using AVMs over traditional chartered surveyors are that they save time, money and resources since they can be obtained online in a matter of seconds. They also tend to give more valuation choices and not suffer from the same degree of fraud risk. HomeInfoMax updates its database daily with the latest property sales and financing transactions, tax ownership, assessment rolls and property characteristic data. Unlike property records accessible across the country, online home valuation is currently limited to some extent. This database completeness varies by State and by County, and before attempting to request a valuation report you must check State/County Coverage to make sure it is available in your desired area.
Types of Properties: residential only -- can be owner occupied or non-owner occupied.
Contents of ValuePoint®4 Report: Property Ownership, Valuation Results, Property Characteristics, Last and Prior Sales, Comparable Sales Summary, and up to 5 Comps (with links to their own records) derived from a surrounding neighborhood of the primary subject/location.
Property Data: most valuation reports include immediate estimate of a home's value, analysis of a market area, subject property information and comparable sales records. Property section includes location and current ownership. Valuation Result includes: Estimated Property Value and Value Range, Valuation Date at a specific point in time, Valuation Grade and Score, and Forecasted Standard Deviation. Comparable Sales Summary includes: Living Area, Lot Area, number of Beds and Baths, Year Built, last Sale Price, Price per Sq. Ft. and last Sale Date. Propriety Information includes various characteristics of a subject property and its Last and Prior Market Sale data. Comps show the distance from the subject and include property ownership and property characteristics, as well as provide links with immediate access to their respective available records. Please review the sample of a Property Valuation Report.
Differing from property records, definitions of ValuePoint4 Description, Range and Validation are unique; please click on the link to review the full scoring support and explanations for VP4 Valuation Score. Reports do not represent the condition of the title and may not include all recorded information. Not all data may be available in all Counties or on every real property.