An Automated Valuation Model, or an AVM, is a computer algorithm that looks at public records to make a determination based on square footage, comparable sales and other elements. It is as easy as to get as putting your address in a blank but unfortunately, AVM results may only be accurate about 20% of the time.
It is understandable why so many real estate sites have included AVM’s as part of their offerings. Even if a person isn’t ready to sell their investment, they like to know its value! It is easy to find the price of stocks or mutual funds on any given day, but the value of a home is especially more difficult to determine. This is why having a pair of experienced eyes to consider aspects that are not easily quantifiable can make a big difference.
A skilled professional can tell which properties are truly comparable based on a wide array of factors. A knowledgeable expert can recognize features, floorplans, absorption rates by area and other things that can affect value but are difficult to quantify when using an AVM algorithm. A popular AVM, Zestimate®, states “It is considered a starting point at determining a home’s value.” While an AVM contains some of the same information as a comparable market analysis, it lacks a critical human factor.
Regardless of whether you’re just curious as to how much your home is worth, or if you are ready to monetize your equity, I’m available to give you that information without obligation.