"Yeah, But....." | My Two Cents on AVM

Automated valuation platforms such as Zillow, Corelogic and others, are increasingly being relied upon by Loan Officers counseling sellers on re-fi's, Lien holders weighing the pros and cons of granting a short sale, and sellers with a white-knuckled grip on equity which has been slowly seeping through the fingers of their clenched fists for the last 4 years.

Here is a description of the AVM model from Fannie Mae's website:

AVMs are statistically-based computer programs that use real estate information such as comparable sales, property characteristics, tax assessments, and price trends to provide an estimate of value for a specific property

On one hand, I get it.

The technology is there, the numbers are what they are, and some computer, somewhere, can calculate a "value" far more quickly than a BPO or Market Analysis from a local real estate professional experienced in the area can generate.

Yeah, but on the other hand...

Does a computer smell cat urine in all quadrants of the house? See the nicotine stains lining the walls from years of Cigarette smoke? Take into account the three vehicles (all apparently inoperable) parked in the front yard on the grass?

The list of factors which must be considered when accurately offering a current market value of a property, is far more comprehensive and frankly, more personal, than any computer could ever include.

LOCATION: More than City, State and Zip (All data for the processor), how about factors such as school boundary desirability, backing to a busy street (vs. not), being located under High Tension Power Lines?

Do the robots computers take these calculate these variables?

I know I do.

I know buyers do too.

CONDITION: Seems to be a no-brainer, but if the AVM program is comparing one home in a neighborhood to say, three others that are comparable in terms of BR # and square footage, but otherwise have no similarities, is that an accurate reflection of value?

Or is there is more to property valuation than square footage and lot size?

I think an apple and a pear might weigh the same, take up the same amount of space (even fall into the same fruit category), but they certainly are shaped differently, appeal to different tastes and are priced differently. Does the shape, smell, color and quality of a house matter to a robot computer? It does to me.

And I know it does to buyers too.

BEAUTY: Yes, I said it. Like all those shiny, sparkly, pretty people in a bar, it's the "outside" aesthetic which usually garners the most attention. I doubt an AVM makes value concessions to the "parked out" flat one acre lot vs. the house on an acre which is predominately wetlands, covered in blackberries and unusable land due to septic and well covenants...but I do.

And I know buyers do too.

I could go on and, and in fact, will gladly continue this debate if you're interested in contacting me to contine the discussion.

I'm not saying robots AVM models don't have their place in the industry. I'm just worried they are being given a bit more credence than they deserve.

And frankly....they aren't as good at it as moi.

Just sayin'

PS: If you're in the greater Seattle Area and would like a more personalized AVM based on Human assessments (do computers buy houses?) feel free to request an online analysis here. Or you're welcome to call me for a real life, personalized evaluation of your property's value anytime 425.432.5400