My New Blog

Case in point, out of personal experience with a "automated appraisal."  I resently sold my home and purchased another.  Without getting into numbers, the AVM of this popular site estimated my home 14% higher than the what I sold it for.  The appraisal came in 4% higher.  The AVM never took into consideartion a multiple of factors limiting the properties marketability, primarily its location! 

On the home I purchased, the "automated appraisal" came in 22% higher than what I purchased my house for!  And it is a typical style and sized house for the neighbor hood.  The appraisal came in within 3% of our purchase.  How can this happen?

So your saying to yourself that this is an advantage to a homeowner.  Now take this senario on a refinance.  A homeowner wants to borrower using a 100% loan to value ratio.  The AVM states the house is worth $500,000+/- even though it is only worth $450,000+/-.  Now the borrower is in over their head, cant afford the mortgage they were put into and cant sell the house for the $500,000 the borrower was told it was worth by this lenders AVM...  Foreclosure...  Who's to blame???