The Blackwell Group

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AVMs - Unsafe at any Speed

building-09 In these times of mortgage crisis and the problems with "sub-prime" loans as well as mortgage brokers, one can only wonder what role did Automated Valuation Models (AVMs) play in the current meltdown? To date I have heard no mention of their participation, and yet its been estimated that upwards of 30% of all valuations are done by AVMs.

Could AVMs have been manipulated to assist with increasing the value?
How do you know?

Currently, there are no agencies of any kind or regulations of any kind that oversee AVMs, their outputs, or AVM operators. The following article was written for the Valuation 2000 conference held in Las Vegas and sponsored by the big three appraisal organizations, AI, ASA, and the ASFMRA. Given the current crisis it seems very timely to take another look at what was written before the big housing bubble burst.

Attachments:
File	Description	File size
Download This Document Here!	AVMs - Unsafe at any Speed	33 Kb

Desk Evaluation Format

This Evaluation is an assessment of the probable value of a property and is prepared according to the Interagency Appraisal and Evaluation Guidelines, dated October 27, 1994 and the OCC Commercial Real Estate and Construction Handbook – Appendix E. This document is intended to meet the requirements of a Restricted Appraisal Report as set forth under Standards Rule 2-2 (c) of the Uniform Standards of Professional Appraisal Practice.

Attachments:
File	Description	File size
Download This Form Here!	The Blackwell Group - Real Estate Valuation Form	135 Kb

The Wilson Trust

Download the following document to view an example of how a minority/fractional interest should be valued.

The purpose of these two appraisals was to estimate the 100% Market Value of the subject properties, "AS IS." The effective date of the Market Value was February 2, 2008. The date of the property inspection was April 13, 2008.

Attachments:
File	Description	File size
Download This Document Here!	The Wilson Trust	379 Kb


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2 Offices to Serve You

Email Us

AVMs - Unsafe at any Speed

Desk Evaluation Format

The Wilson Trust

Newsflash

New ASA course and new text book, Going Concern for Real Estate Appraisers

New Webinar on Ethics

Proper valuation of minority/fractional interest

New website dealing with Eminent Domain issues

Deane Wilson is an AQB Certified USPAP Instructor