The properties used to generate a subject property's AVM or RVM® do not necessarily yield the same result when applied in the Comp Analysis feature. This is because the mechanism used to generate an AVM or RVM® estimated home value is different from the math that powers Comp Analysis.
The AVM and RVM are sophisticated algorithms that build in a great deal of comparison logic to arrive at an estimate for a property. The models take into account several factors about the comparison property including:
- estimated value, listing price or recently sold price (including MLS data in the case of the RVM®)
- how recent the sale is, for a recently sold comparison property
- proximity to subject property
By comparison, RPR's Comp Analysis feature generates a revised estimated home value for the subject property by applying the recently sold price, listing price or estimated value of the comparison properties to the subject property's estimated home value, using the subject property's living area for the calculation. The math is more transparent than the AVM or RVM® algorithm.
Additional information about how estimated value is calculated can be found here: http://support.narrpr.com/entries/186361-How-are-other-properties-used-to-calculate-a-subject-property-s-estimated-value-
Occasionally an agent will find that neither the AVM or RVM® estimate nor the Comp Analysis result seems right for a property. Remember that you can specify your own dollar amount for a Comp Analysis, when you know what amount is accurate for a property, or use the Refine Value feature to fine-tune a property's estimate based on home improvements, market conditions and other factors. An agent will always have more local knowledge and expertise to bring to bear on pricing a home.
You also have the option to suppress the system-generated AVM/RVM® and/or the user-generated Refined Value from any report you run. The controls on the report generation page provide flexibility about what to include in reports you are providing your clients. Click on the "More Details" link to the right of any report type and a drop-down list will appear allowing you to check or un-check any elements you want to include or not include. (The controls for estimated value and refined value are at the end of the list.) It can be helpful for a client to know what the computer models (RPR and others) do say about a home because consumers often access them during the home purchase and sale process.