Caterina Platt
Senior Member
- Joined
- Jan 17, 2002
- Professional Status
- Certified Residential Appraiser
- State
- New Mexico
Here is some of the actual verbiage from the First American Real Estate Solutions Powerbase 6.0 Report I was provided in an attempt to get me to bump the value.
First American REC uses data obtained from numerous public sources. Some areas of the country provide us with different levels of information, it is presented on an 'as is, as available' basis. First American RES makes no warranties, expressed or implied withou limitiation, to the information provided, nor is responsible for any errors or omissions. This valuation is NOT an appraisal. User acknowledges that this product is a technology report, a product of an automated valuation technology analysis. No human interaction or inspection goes into the final results and analysis.
Here's what I had to write back to the client after spending additional time away from another report:
The appraiser searched available data for the 5 Considered Area Market Sales, as well as the 8 AVM Comparables offered. MLS data was available for 4 of the 5 Considered, and 5 of the 8 Sales comparables. The appraiser is also personally familiar with one of the 3 remaining comparables, leaving only 2 which could not be cross checked for accuracy and further considered in the valuation estimate of the subject. The results are as follows:
5 AVM Considered Area Market Sales
4 Sales verified with AVM stated sales prices overstated by an average of $30,283.50. The range of overstated
sale price errors was from $8,704 to $49,274.
8 AVM Supplied Sales Comparables
Of the 6 verified sales, 1 was stated $13,300 lower than MLS stated sales price, and 5 were overstated by an average of $21,180. The range of overstated errors was from $8,800 to $44,700.
Please also note that the AVM's 'Considered #2 Area Market Sale' which was not utilized in the AVM Sales Analysis is actually the appraiser's Sale 3, however, the appraiser is utilizing Multiple Listing Data with a verfied sale price stated at $187,000 with $4,000 in Seller concessions. The AVM data states this dwelling sold for $236,274.
Please note the statement taken from the Powerbase 6.0 Report's page 2 of 4 under the Sales Comparison Analysis, 'These properties, and others, are believed to be full value transfers or may represent an estimate of sale.' Due to the numerous inaccuracies noted in the stated sales prices, it can only be surmised that perhaps all the stated sales prices are the AVM provider's estimates.
These inaccurate sales prices, the lack of any physical characteristics information, and the lack of verification of sales transactions can lead to vastly inaccurate estimations based on AVM data, particularly in the case of a non-disclosure state such as New Mexico. Private sales data (that which does not utilize MLS or the services of a Realtor) is not available as a part of public records. When one of these transactions closes, the records which can be accessed are the deed and typically any mortgage note that is filed, if applicable. It is from these mortgage notes that the AVM data likely attempts estimating a sales price. When insufficient data exists via MLS and the appraisers' database, it can become necessary to attempt to obtain information from private buyers and sellers regarding the transaction. In the case of the subject's development, however, more than sufficient sales data exists to observe value trends, and adequately support any estimate of value for a dwelling such as the subject.
See the attached additional comparables that further support the subject's original estimation of value.
The AVM's results were $207,000 with a highest reasonable of $222,000 and a lowest reasonable of $192,000.
My appraised value based on verifed data and 1 comp being a model match to boot: $176,000 with all the latitude I could give 'er.
What a crock this is!! So...now you email it and think, 'Well, time spent, time wasted, but at least maybe they'll understand.' Nope. I get this email a day or so later:
Could you take a look at these addresses and see what the square footage is, the recent sales price and date to see if these could be used in place of the comps we would like to increase value to $192,000.00
First American REC uses data obtained from numerous public sources. Some areas of the country provide us with different levels of information, it is presented on an 'as is, as available' basis. First American RES makes no warranties, expressed or implied withou limitiation, to the information provided, nor is responsible for any errors or omissions. This valuation is NOT an appraisal. User acknowledges that this product is a technology report, a product of an automated valuation technology analysis. No human interaction or inspection goes into the final results and analysis.
Here's what I had to write back to the client after spending additional time away from another report:
The appraiser searched available data for the 5 Considered Area Market Sales, as well as the 8 AVM Comparables offered. MLS data was available for 4 of the 5 Considered, and 5 of the 8 Sales comparables. The appraiser is also personally familiar with one of the 3 remaining comparables, leaving only 2 which could not be cross checked for accuracy and further considered in the valuation estimate of the subject. The results are as follows:
5 AVM Considered Area Market Sales
4 Sales verified with AVM stated sales prices overstated by an average of $30,283.50. The range of overstated
sale price errors was from $8,704 to $49,274.
8 AVM Supplied Sales Comparables
Of the 6 verified sales, 1 was stated $13,300 lower than MLS stated sales price, and 5 were overstated by an average of $21,180. The range of overstated errors was from $8,800 to $44,700.
Please also note that the AVM's 'Considered #2 Area Market Sale' which was not utilized in the AVM Sales Analysis is actually the appraiser's Sale 3, however, the appraiser is utilizing Multiple Listing Data with a verfied sale price stated at $187,000 with $4,000 in Seller concessions. The AVM data states this dwelling sold for $236,274.
Please note the statement taken from the Powerbase 6.0 Report's page 2 of 4 under the Sales Comparison Analysis, 'These properties, and others, are believed to be full value transfers or may represent an estimate of sale.' Due to the numerous inaccuracies noted in the stated sales prices, it can only be surmised that perhaps all the stated sales prices are the AVM provider's estimates.
These inaccurate sales prices, the lack of any physical characteristics information, and the lack of verification of sales transactions can lead to vastly inaccurate estimations based on AVM data, particularly in the case of a non-disclosure state such as New Mexico. Private sales data (that which does not utilize MLS or the services of a Realtor) is not available as a part of public records. When one of these transactions closes, the records which can be accessed are the deed and typically any mortgage note that is filed, if applicable. It is from these mortgage notes that the AVM data likely attempts estimating a sales price. When insufficient data exists via MLS and the appraisers' database, it can become necessary to attempt to obtain information from private buyers and sellers regarding the transaction. In the case of the subject's development, however, more than sufficient sales data exists to observe value trends, and adequately support any estimate of value for a dwelling such as the subject.
See the attached additional comparables that further support the subject's original estimation of value.
The AVM's results were $207,000 with a highest reasonable of $222,000 and a lowest reasonable of $192,000.
My appraised value based on verifed data and 1 comp being a model match to boot: $176,000 with all the latitude I could give 'er.
What a crock this is!! So...now you email it and think, 'Well, time spent, time wasted, but at least maybe they'll understand.' Nope. I get this email a day or so later:
Could you take a look at these addresses and see what the square footage is, the recent sales price and date to see if these could be used in place of the comps we would like to increase value to $192,000.00
