“Veros continues to accurately predict robust appreciation throughout the overall housing market, which will remain solid and steady well into 2022,” said Darius Bozorgi, CEO of Veros Real Estate Solutions. “The continued year-over-year increase is heavily driven by strong markets in the Western United States. Four of the highest-performing markets are located in Idaho where in-migration continues to fuel housing demand.”
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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One question that naturally arises is how do hurricanes impact home prices after they hit? The answer may be surprising.
To investigate, we looked at a list of the 20 most expensive hurricanes on record (adjusted for inflation) in the US from the last 32 years.
Watch our Housing Market Insider interview with Veros’ Chief Economist, Eric Fox, and Salt Lake City’s very own Market Expert Dave Robison, ‘Utah Dave’ Robison, to get both the data and the feet on the street insight.