And just like that, incorporated data which drives the mean’s and averages up or down for everyone else.

My parents got an AVM appraisal from their lender for a refi. The comp selection was awful. One was across a major road into a different market and was 40% smaller in GLA. It could of used recent sales in the community.

Ive seen them off much more than that. Just appraised one that they had around 30-50% less.

Last appraisal I got from one client redfin was pushed in my face. They estimated 800k….the highest comp redfin used was $625k which I had in my report and was a net down in adjustments. Easy appraisal with all comps in the community. Can’t say for sure, but i’d guess because I didn’t use the borrowers cherry picked sales in superior areas.

Politicians have to concern themselves with Value, they frequently use prices to illustrate.

Appraisers and economists use prices to illustrate trends and prices. Most politicians have good education, but training is done in house.

Oh man, you’ll have to get away from mainstream corporate news and their partner corporate partnership social medial platforms to get that perspective. It’s out there, dare to look.

Did they perhaps mean to control price, not understanding the difference between price and value?

If only we had elections, it’s the selection program now. Have you seen the news out of Brazil or stopped by Frank Speech lately? Thank you.

Avm’s only work on the upward swing in a stable rate market, and only work partially at best. Consider how recently we’re dealing with purchasing power variations not seen in a decade if not longer. What monthly payment used to buy someone a 700k, now barely swings them a 400k, etc, etc. The twist is the data is deceptive, as new builders continue with projects apparently unphased. Builders play the long game and can push stock, pre orders, and seemingly discounted compared to resale in a rising market for like an entire year before they feel the pinch of more expensive lending terms. Many an agent are speculating the current projects, despite being full speed ahead and producing many new units, will be many a new construction builders last projects. Could be a great time to zip up discounted stock on the closing, if you can time it right, they’re running out of pre orders and rate lock shoppers.

As many a buyer whom was on lock and shop or some rate lock extension program continued to flow through the data sets as if they were borrowing at lower rates than current, because they are, often resulting in MLS data which is reflective of 4 months ago rate locks. (many rate locks are 60 days to shop, another 60 to close.) Then you’ve got personal motivations, stressed agents needing deals as they go under left and right, and a myriad of good to poor advisement on the real estate circuit channels.

Competent representation is more important than ever, the data disparity proves that as well. As dom’s draw out and price slashes continue. This is a great event for our real property markets, some slide back to more affordable pricing, thereby reducing the margin of difference in home step up categorical pricing, increasing buyer affordability to get into better homes nationwide. We may only be observing a blip in listing excess though, won’t be long now before maximally leveraged people are frozen immobile, clutching to the low rate. The 4 month window of rate lock delayed data came to an end last month. So now we really get to see the effects of a sustained high rate. You can’t Everone shopping know is locked substantially higher than quite a few recent sales indicate. So, you know, the difference between price and value. Do not adjust based on rate conditions, even if you could know, because there are more variables than ever. Responsible home owners flipping equity, they’re going to get good deals and better values. People leveraged to the hilt will have to hang on or bail out. We’ll know it’s really unstable when the note of short approval follows enough new listings on a steady basis.

Tell me the avm programmers are ‘coding this in’ with ‘current market conditions’. Not a chance, not a chance. AVM confidence scores are manipulatable too, fyi. The amc guys are not going to be of assistance for appraisers pondering these conundrums, they were hardly qualified to even use computers, much less give complex advisement on shifting markets. Running the valuation services industry like the stock market won’t help either, despite success rates, the guys at zero hedge are still just basically speculative advisement in all positions. There was a story someone bought on speculation 4 million the rate would dip again next june, that’s a risky proposition. My mortgage guy from the cu just revised his estimate of rate reduction from next spring to ‘4 to 7 years out, possibly more’.

Think it’s a coincidence the intended appraiser replacement program is happening right now? You’re the quarterback, you make the call. I’m simply too fascinated with all the returning voices on twitter to spend much time on it, lol. Beast mode engaged. It’s a madhouse. Still not going to make an account though, lol.

All Real Estate values are local OUR “Newcom in California” is trying to dictate city, county and state zoning and uses.

Land sites vary for all kinds of reasons, Maybe a flood plain, an avigation, or a view easement, Maybe surrounded by chicken, or dairy farms, some stink, some don’t.
Stink or not distant politicians are pled to locals.

Our local Appraiser-mortgage group should Address the REAL problems which can influenced by US, and our Politicians, or elect new ones.

Seek the truth.

The $40,677 difference doesn’t matter to the lending institution as long as a loan is made and no one ever defaults, loses a job, gets divorced, spouse dies, gets repossessed etc…….it’s on one example. Same thinking back in 2008 when millions upon millions walked away from their homes, and condos.

However, AVMs average estimated values were 14 to 28% higher than the appraised value and 10 to 24% higher than the highest sale price.

First American est. value is $341,791
Remine est. value is $336,335
Redfin est. value is $377,012
Zillow Zestimate is $341,500

Somehow us appraisers still…lol

Actually a 10% is not bad. I’d bet if you hired 3 appraisers they would have a similar 10% +/- spread. A 10% spread on a $550K to $650K home isn’t half bad.

I don’t like AVM’s anymore than most appraisers, but they can be a useful tool in some cases.