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What was the name of that new AVM start up?

Discussion in 'Urgent - Help Needed' started by JSmith43, Mar 4, 2006.

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  1. JSmith43

    JSmith43 Elite Member

    22
    May 5, 2003
    Professional Status:
    Certified General Appraiser
    State:
    California
    Where did that thread go that mentioned the new start up company with the free AVM? I think one of the founders was an owner or investor in Expedia.

    Thanks for pointing me to it. The search function failed me as did my memory:new_all_coholic:
     
  2. Panduro Alonso

    Panduro Alonso Sophomore Member

    0
    May 9, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    California
  3. JSmith43

    JSmith43 Elite Member

    22
    May 5, 2003
    Professional Status:
    Certified General Appraiser
    State:
    California
    Now, that's quick service! Many thanks!
     
  4. Bill Baughn

    Bill Baughn Senior Member

    0
    Mar 10, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Nevada
    Roger,

    My experience with zillow.com is that many times it can't "find" the property. However, unless the property is brand new the AVM at ditech.com can find it and it too gives you a value range. B of A has one too but I don't like their comp selection they provide at the end of their report.
     
  5. Austin

    Austin Elite Member

    1
    Jan 16, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Virginia
    AVM Spider

    I am in a new AVM forum for developers and uses of AVM. Zillow.com was discussed and some people talked with their developers. Zillow it seems is more into selling ads than giving values. Some posters reported huge errors and insane value ranges.
    Someone reported that there is a new AVM spider that finds AVM's and can test their credibility by finding the AVM with the lowest variance from predicting the actual sale price of the data base properties. We were discussing the credibility and verification of results issue. I brought up the issue that any system has to have some standard of performance.
    This forum has just been up a week with only 43 people but my general perception is that in some areas like CA AVM is going to take a huge market share and big lenders are really investing into them.
     
  6. jay trotta

    jay trotta Elite Member

    18
    Feb 8, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Connecticut
    Austin,
    it always amazes me that Lenders will spend a huge amount of Money on "speculative" projects, yet whine about paying $200-$400 for a reliable / time tested / product.

    In our area, data gatherers have been around since the late 70's and the data is "questionable" based on the people who are hired to gather the data, therefore, without the opportunity to "verify" that data - it is sheer guess work at best. Now thats a 36 year run and still questionable; ifn I was into statistics- I wouldn't spend $.02 investing into a product that after 30 years, still lacks credability.

    Suppose ifn I were using "other peoples Money" (Bankers) - then it wouldn't bother me either.
     
  7. Brad Ellis

    Brad Ellis Senior Member

    0
    Feb 7, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Jay,

    Please do not be surprised.

    If you are a lender who does 10,000 loans per month, an average appraisal fee at $300 means they spend $3 million/month on the appraisals.

    And you are wondering why they would spend some money to develop systems that would save perhaps $1 million per month, provide lendable numbers (saying nothing about accuracy here- but Wall St. is very interested in using these numbers) and provide instant answers vs. waiting a few days to a week for he appraised value? They will be used for low LTVs and for high FICOs and will likely blend in other risk factors.

    Think it over.

    Do not assume that the numbers produced wil be either wrong or inadequate for the lenders' purposes. They will be tested, and over time, loan delinquencies will also be tested.

    BTW, 10,000 loans per month will not put that lender in the top 10 in the USA.

    Brad
     
  8. Renee Healion

    Renee Healion Senior Member

    0
    Feb 21, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Connecticut
    Why do lenders say lenders spend for appraisals since the borrower pays?
     
  9. JSmith43

    JSmith43 Elite Member

    22
    May 5, 2003
    Professional Status:
    Certified General Appraiser
    State:
    California

    Many times the lender orders and pays for an appraisal on a transaction that does not close. The borrower does not pay unless the fees were collected up front.

    Additionally, many lenders roll the appraisal and credit report into what is usually labeled an "application fee", and every dollar they save on the underlying components of the application fee, is a dollar of extra revenue.
     
  10. Renee Healion

    Renee Healion Senior Member

    0
    Feb 21, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Connecticut
    Thank you , Roger. But that seems to be a call for (even) more appraisal fees to be collected up front. And the second paragraph is the heart of it.

    The only other costs I think they could claim to save would be actual cost in labor and materials of cutting of checks to appraisers. But lenders counting the, say $300 each, indicates it is what you said last.
     
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