There’s a new way for lenders to gauge the value of a house.
The automated valuation model (AVM) is lender-grade and available as a white label solution through Attom’s data delivery platforms. It has valuations for over 80 million homes across the U.S., according to Attom.
“The new Attomized AVM fills an important gap in the world of property valuation products that primarily reside on one of two extremes: overpriced lender-grade AVMs that are only cost-effective for a select few giant corporations; and free AVMs available to the masses but diluted due to their inherent need to be all-inclusive — not to mention they are typically not available to be delivered in bulk,” Rob Barber, CEO with Attom Data Solutions, said in a statement.
It works like this: based on data provided by the AVM analytics company, Attomized AVM uses an algorithm to evaluate historic rates and current sales prices in a specific geographic area.
It also deliberately excludes certain more uncommon types of properties: “mobile homes, extremely high-end luxury homes, special use properties, homes on farm land and multi-unit homes with five or more units,” according to a press release. Instead, only single-family homes, condos and small multiple family properties are evaluated in the valuation.
But Attom and AVM say this makes their tool more accurate because it can focus on delivering valuation for more standard types of property with higher confidence. At 92 percent confidence, which Attom and AVM use as an example, a property of $500,000 would sell between 8 percent of the automated valuation model, or between $460,000 to $540,000.