The Standard and Poors’ latest guidelines on Automated Valuation Models (AVMs) demonstrates they are as ‘near-as-dammit’ as accurate as a surveyor’s physical inspection.
Hometrack’s AVM utilises its database of over twelve million property records to undertake online valuations for lenders.
The online valuation service significantly reduces costs for mortgage lenders as the AVM offers a much faster and less expensive valuation procedure.
Hometrack’s Realtime product is also the only AVM that is indemnified. Lenders are protected against valuation errors of over 10% at up to 90% of the loan to value (LTV) ratio. Lenders will therefore be taking a quantified risk when utilising Hometrack’s AVM.
Mark Witherspoon, chief executive of Hometrack comments: “We are delighted that the AVM is increasingly being recognised as the default valuation method replacing both drive-bys and physical valuations. The service we offer undoubtedly enhances mortgage lenders’ business operations by both improving customer service and delivering immediate cost savings. Furthermore, with the advent of the Home Information Packs (HIPs), the market needs this innovation to support the home-buying process”
