HOUSINGNEWS REPORT
MY TAKE
BUILDING A BETTER HOME VALUE MOUSETRAP
BY CLIFFORD LIPSCOMB, PH.D., MRICS VICE CHAIR AND CO-MANAGING DIRECTOR, GREENFIELD ADVISORS MANAGING DIRECTOR, BARTOW STREET CAPITAL
Introduction Property valuation is an integral part of the housing industry that is long overdue for disruption. Although much could be said on the topic of automated valuation models ¹ , in this piece I explore the current state of the commercially available AVM market, discuss how current AVMs fall short of meeting customers’ expectations, and lastly propose where the AVM industry might go next to meet future customer demands. What is the Current State of the AVM Market? The current state of the AVM market is quite competitive. In the lending world, AVM estimates obtained via one of the
approximately 20 commercially available AVMs range from $1.50 per property (for a high volume of properties) to more than $12 per property (for one-at-a-time valuations). In the lead generation world, AVM estimates are run for pennies, literally, depending on the client and the intended use. With such a wide range of per property AVM pricing strategies, the opportunity exists for new competitors to enter the market in a disruptive way by differentiating themselves not only on pricing, but also on the data returned to customers for each property valued using an AVM. Below I discuss ways in which this disruption of the industry can be achieved.
Clifford Lipscomb
Clifford Lipscomb is the Director of Economic Research at Greenfield Advisors, a Chartered Valuation Surveyor, and has more than 18 years of experience in economic analysis, statistical analysis, consulting, and teaching. He serves as an Associate Editor of the Journal of Real Estate Literature.
ATTOM Data Solutions • P11
Made with FlippingBook Online newsletter