How are other properties used to calculate a subject property's estimated value?

Last update: April 16, 2014

The properties that are displayed in the “Properties Used to Create this RVM®/AVM” pop-up (linked from the estimated value shown on the Property Details page as well as the Comp Analysis tool) represent the specific properties used by Black Knight Financial Services (BKFS) to generate the subject property’s estimated value (AVM or RVM®). The formula accounts for proximity to the subject property and how recently the comparison property was sold. RPR displays each property's basic facts, current valuation and sales price and sales date, if applicable, all of which are important inputs for the subject property's AVM/RVM® calculation.

 

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Properties used for AVM estimates draw solely from publicly recorded sold data. Properties used for RVM estimates include on-market and off-market listings from MLS data, in addition to publicly recorded sold data. For these, RPR chooses the appropriate price and date to display. For properties that are on-market MLS listings, the list date and most recent list price are displayed. For properties that are off-market MLS listings with a status other than Sold, the off-market date and most recent list price are displayed. For comps that are off-market MLS listings with a status of Sold, RPR displays the sold price and sold date. 

Due to the large scale and automated nature of AVMs/RVMs, we understand that some of the comparison properties may be different from the properties that an agent would select for a traditional CMA. For this reason RPR provides tools for the agent to apply their local knowledge and select their own comps, which will adjust the AVM or RVM for the subject property. This is available through RPR's Comp Analysis tool. The “Properties Used to Create this RVM®/AVM” pop-up is shown to help users see how a property's automated valuation was calculated. Properties are chosen based on last sale date, proximity to the subject property and physical similarity to the subject property. Agents may find only limited comps available in rural areas or in areas where property characteristics listed in local public records are incomplete.

If a property doesn’t have an AVM, it could mean that RPR does not have sales transaction information in that area. This can be true in “non-disclosure” states (Alaska, Idaho, Indiana, Kansas, Louisiana, Mississippi, some counties in Missouri, Montana, New Mexico, Texas, Utah and Wyoming) where transactions are not publicly reported. RPR does not have access to much of the property information needed to generate an AVM. Also, AVMs and RVMs may not exist for properties in some rural areas where local public records are incomplete.

RPR is always working to integrate sales data and property characteristics obtained from MLS sources to improve our list of available comparison properties.

You can learn more about how to use comps in RPR here: http://support.narrpr.com/entries/22208412-what-is-the-comp-analysis-tool-and-how-do-i-use-it-to-adjust-a-property-s-valuation

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