Veros Real Estate Solutions is a top choice for real estate data and technology.
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.
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.
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.
TO SPEAK TO OUR SALES TEAM
Jeff Hogan, Veros Real Estate Solutions’ (Veros) Vice President of Valuations, recently discussed the challenges of diversity in the real estate appraisal industry with The Sacramento Observer in the latest article titled, “Real Estate Appraisal’s Diversity Problem.”
How Can Home Equity Lenders Differentiate Themselves? In the National Mortgage Professional’s recent article, “Standing Out in a Crowded Home Equity Market,” written by Jeremy McCarty, Founder and CEO of Valligent, shares insights on how lenders can play a crucial role in helping homeowners tap into their home equity in a high demand home
Curious where the Spring 2023 housing market is headed?
Listen to the latest episode of the National Mortgage Professionals podcast titled “What to Expect from the Spring Buying Season,” where Eric Fox, Veros’ Chief Economist, discusses the recent dramatic market volatility and how it may stabilize.
