Reena Agrawal, research economist at Veros, touches on how “AVMs Can Provide Accuracy and Fairness in Home Valuations” in recent Progress in Lending’s article. She notes how the housing industry can deflect discrimination and how AVMs allow lenders to identify misjudgments in valuations.
The results revealed no evidence of racial basis in the VeroVALUE AVM.
“We found that the proportion of properties that are undervalued by 15% or more is not correlated with the proportion of Black, Hispanic, Asian, or White populations,” said Eric Fox, Veros Real Estate Solutions Chief Economist. “This is crucial because it addresses concerns about undervaluations of minority-owned properties.”