CU Not the Only AVM Affecting Appraisers
Assignments Funneled Back Through HouseCanary & Your Data
CU from the GSE’s was thrust on appraisers in 2011. Since then, the giant sink hole designed by the ‘enterprises’ has gobbled up millions of home data elements. And in some cases, this data has been used AGAINST appraisers – who have no direct access to it, even though ‘we’ are the ones supplying the data.
But they are not the only entity doing this. A company named ‘HouseCanary’ has also been amassing more millions of data points about US properties.
During 2017, HouseCanary has had $64 MILLION dollars of investor funding poured into it. They claim they will use this bottomless pit of dollar bills to…
provide home price insights and forecasts within a margin of error of 2.5 percent or less.”
And per this article, their desired goal is to decrease that margin further. According to the article, a key element of HouseCanary service is…
to help sellers and buyers determine listing prices and understand how the value of the property will be reconciled with the appraiser valuation.”
We’ve never heard how accurate CU is when they present ‘sales’ to be considered as “comparables” in appraisal reports. What we do know is CU assigns a ‘loan safety rating’ to the property based on the appraisal info and other data. Even Zillow admits their Z-mates are not totally accurate. Realist (available in many MLS systems) has a ‘confidence score’ no better than 75% in some cases. But here’s HouseCanary claiming they can come within a very narrow margin of error when determining ‘price insights.’
To add insult to injury, HouseCanary has display booths at various appraiser conferences (and on their web site), where they encourage appraisers to ‘sign up with us’ and use HouseCanary data to help you do your reports quicker and easier. When that happens, and assignments are funneled back through the HouseCanary system, guess what happens to your property data? Do I really have to explain this??
Famous songster Bob Dylan said it best… in 1964 – The Times They Are A-Changin’