By Q1 2022, the overall average forecast is 7%, an additional increase of 1.1 percentage points compared to 5.9% just a quarter ago. This level of change from one quarter to the next is heavily driven by strong markets, primarily in the West. “The VeroFORECAST data indicates upward price pressure in nearly all markets during 2021,” said Darius Bozorgi, CEO of Veros Real Estate Solutions. “Buyer demand remains strong with almost no major metro area showing notable home price depreciation over the next 12 months.”
VeroVALUE Automated Valuation Model (AVM) Value Estimates
VeroVALUE is an automated valuation model (AVM) developed by Veros Real Estate Solutions. VeroVALUE provides an estimated value of a property based on key characteristics of the home, a variety of local market factors, as well as recent and nearby sales in the surrounding area.
Through the mortgage loan application process, your lender may have requested a VeroVALUE report on the address that is the subject of your loan application. In accordance with Consumer Financial Protection Bureau (CFPB) regulations, this report is being provided to help you better understand the information that may have been used in the lender’s consideration of your application.
Generating & Using VeroVALUE Value Estimates
VeroVALUE generates property value estimates based on multiple proprietary statistical modeling methodologies that have been developed and cultivated by Veros since 2001. These models use a variety of data sources including publically sourced data and privately sourced data to generate the current value estimates on each report. The VeroVALUE report includes a value estimate, value range, confidence score (degree of confidence in the accuracy of the valuation estimate), as well as supplemental data on the subject property and nearby properties based on the latest available information.
By their nature, AVMs are automated and objective tools. AVMs provide an advantage to users in preventing possible bias that can contribute to the over-inflation or under-valuation of a property, however, AVMs rely on the best available marketplace data and do not have the capacity to assess value changes that may be associated with home additions, renovations, lack of maintenance, or other factors which may contribute to or detract from the market value of the property. It is also important to note that inaccuracies may exist within the public and privately sourced data. Even the best analytic models are limited by the availability and quality of the data they receive.
Applying your AVM Value Estimate
Lenders may use value estimates from VeroVALUE or other AVM providers for a variety of reasons to guide them during the mortgage process. AVM estimates are not an appraisal prepared by a certified or licensed appraiser, nor are they intended to fully replace an appraisal in residential real estate purchase transactions (or other named mortgage transactions per the 2010 Interagency Appraisal & Evaluation Guidelines). Prospective home buyers should understand that an AVM is one available tool among many that lenders may utilize to help assess a property’s current market value. Questions regarding how a VeroVALUE estimate may have factored into any decision made by your lender should be addressed directly to your lender.
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The COVID-19 pandemic revealed new migration trends that show a shift toward the inner United States, thereby boosting home prices, especially in markets such as Boise City, Idaho. The bigger question remains: is this growth likely to continue into 2021? Or is this just a hot trend that will fizzle out sooner than later. Digging
SANTA ANA, Calif., March 11, 2021—Today, Veros Real Estate Solutions, an industry leader in enterprise risk management and collateral valuation services, announced that Sarah Acosta has joined the company as Vice President, Product & Data Operations. Acosta is recognized for her experience managing data strategy, operations and launching innovative products to empower the real estate