Corelogic vs. my appraisal

[Mister Ed]

Yeah... I recently got that on one in a county where there were a total of 4 residential sales in the 12 month period prior to the effective date. I asked for a copy of the report with the "comparables" they used. They used all four from the county, but none were even close to being reasonable comparables.

I told them that the AVM they had was worth less than [edited for family friendliness]

 

[JRS at OBX]

AVMs are scared of my neighborhood. My section of land is a mile wide with 1.5million dollar oceanfront properties on one end of the street and $800,000 soundfront properties on the other end. In the middle of the street there are $200,000 beach boxes.

Nope, that AVM just can't figure it out.

 

[NC Appraising]

Ever since that GSE guide paper came out 6 months (?) ago, I've been running a couple of free AVMs on each assignment. Whenever my number is going to be significantly at odds with what the AVMs poop out, I throw a paragraph into the report to the effect of: "The OMV provided in this report may be significantly higher/lower, than what might be provided by an AVM. This is due to.....[explain why an AVM will step on its crank trying to put a value on this particular subject]."

Of course that doesn't mean the UW wont still stip you, but then at least you get to be sanctimonious when you point them to the statement that's already in your report.

What AVM's do you use? Are they free?

One of my clients use GAAR and other FNC products.

 

[Couch Potato]

This is an easy one!!

Corelogic is available to appraisers, so sign up, and use the comps that they say to use, and go ahead and put their value on it, if one is provided.

Piece of cake. Corelogic knows each and every neighborhood, they have seen the interiors, spoken with agents, are very familiar with the market, verified the data. Their comps and market trends are as good as gold.:Emoticon_hug:

Yes, just contact Bradford Software, and you can have process integrated into your forms program for under five hundred dollars.

 

[Doug DeMars]

Just completed a report for a house in my neck of the woods. I stayed a bit on the conservative side and appraised it for 1M.

Checked Zillow to see what it would say...541,500.

I spent a full day researching and writing...now I'm just waiting for the stips to come.

 

[Mister Ed]

Just completed a report for a house in my neck of the woods. I stayed a bit on the conservative side and appraised it for 1M.

Checked Zillow to see what it would say...541,500.

I spent a full day researching and writing...now I'm just waiting for the stips to come.

May the appraisal gods have mercy on you in this new year....

 

[Ken Tamblyn]

AVMs just plain do not work as far as determining value. They are good at showing the average sales price, market trends and providing some sales. How often is Zillow accurate? I have yet to see it even once. It is impossible for a computer to determine the mindset for a potential human buyer.

AVMs are good for determining what a fellow computer would pay for a home.

Appraisers are good at using computers and other sources to get data, and determining which comps are most reliable, and using our official double secret adjustment book to determine the value.

The AVMs leave out the human aspect.

Remember in the movie "Robo-Cop" when they tried to get robots to take over the jobs of human cops? That didn't work out so good.

Computers can't even drive, how can they look at the comps? Maybe if they could get a computer brain into a robot, and then they could hire a trainee to drive him around. While you are at it, you might as well make the robot look real scary, like a "Robo-Appraiser." You think any do-gooder neighborhood watch citizen is going to question why a heavily armored robot is taking photos in the neighborhood?

Do-Gooder: Taps on armor "Why are you taking pictures of my neighbors house?
Robo-Appraiser: STAND BACK . . . THIS IS YOUR FIRST WARNING
Do-Gooder: Do you have I.D.?
Robo-Appraiser: THIS IS YOUR SECOND WARNING . . .
Do-Gooder: Runs away to confront the paperboy about why he missed the front porch on the people 2 blocks away.

In conclusion, let the appraisers appraise, let the computers compute, and let the robots do whatever the h*ll they want.

 

[Couch Potato]

The future of appraising.

 

[mike32716]

Face reality then deny it, alter it, or deal with it.

More truth to that than you know. CoreLogic is the new HVCC for 2010. Fact is that underwriters are not to blame for this one. It is the back end investors that are demanding a clear reconciliation between your appraisal and a CoreLogic report. Without it, the lender has even more onerous reps and warrants on their loan. Note that there are different levels of CoreLogic reports, so I am assuming they gave you the AVM and "suggested" sales in the "area".

CoreLogic sells this list of "suggested sales" to appraisers for about $8. Not the AVM, but the likely sales that your lender is going to look at. This is the reality.

Several successful ways I have seen to preempt this report is to have an addendum with all your MLS sales listed included in the original report. Order them by REO, short and arms length. Maybe make a comment about any sales that would otherwise look good to someone staring at a regurgitated public record output (CoreLogic). Have a general paragraph at the end stating that these sales were considered but not deemed comparable because (REO, short, etc)...

Yes, they are asking you the age-old old question, "When did you stop beating your wife". Proving a negative is the new reality in this world we live in.

 

[Metamorphic]

What AVM's do you use? Are they free?

One of my clients use GAAR and other FNC products.

Zillow and Real Quest Mobile on the iPhone.