Risk management and collateral valuation services provider Veros Real Estate Solutions has added an automated valuation model from Realtors Property Resource to its lineup of AVM products for lenders and investors.
RPR, a subsidiary of the National Association of Realtors, generates analytics products based on public property records and historical listings data obtained through partnerships with multiple listing services. Santa Ana, Calif.-based Veros is now a reseller of one of those products, an automated property valuation called a Realtors Valuation Model (RVM).
"Utilizing multiple AVMs according to performance is an efficient and effective approach to valuation," said David Rasmussen, Veros’ senior vice president of operations, in a statement. "RVM is another high-performing model to add to our impressive list of available AVMs"
RPR claims that the RVM is more accurate than other AVMs because it incorporates data on recently sold homes and homes for sale that Realtors enter into multiple listing services. Although other AVMs incorporate MLS listing data, some do so without authorization — calling into question the accuracy, completeness and timeliness of the data, RPR President Marty Frame said in a blog post detailing the results of accuracy tests pitting the RVM against AVMs used by a major lender.
RPR’s business model depends on selling analytics products to non-NAR members such as lenders and government agencies. Initial expectations that the database would generate enough revenue to pay for itself have not panned out, however.
Since its founding in November 2009, RPR has cost NAR nearly $58 million and, as of late October, had generated little revenue, at least partially due to coverage gaps resulting from a lack of participation among some major MLSs.
NAR acquired a data platform from Lender Processing Services Inc. to assist in its development of the RPR database. Any revenue generated from sales of analytics is split equally between RPR and LPS.
Rob Walker, managing director of LPS Applied Analytics, said the company is pleased that Veros has joined its network of RVM resellers.
Veros will market RVM as a stand-alone product as well as through its valuation management platforms, VeroSELECT and Sapphire, the company said.
Tricia McClung, RPR’s vice president of business development, said in a statement that the RVM "was created to assist the housing market — from Realtors to investors — with improved analytics that enhance how properties are priced and evaluated. RVM leverages a broad array of property information, including Realtor market data, for a comprehensive, current and reliable valuation result. We are thrilled to be working with Veros to deliver RVM to the industry."