In today’s ever-changing market; speed and efficiency are key when processing mortgage transactions and creating positive customer experiences. There are many options in the valuation space making it overwhelming to choose the tool and partner that is right for you. AVMs have a place in this framework. While AVM technology isn’t a total replacement for property appraisals they offer time and cost savings that will help you remain competitive and keep up with market and customer demands.
Whether or not you choose an AVM in any scenario depends on the nuance surrounding the property, borrower and mortgage in question. If you’re dealing with high-volume markets where the loan-to-value ratio is 60-80% an AVM is likely the right fit. Incorporating an AVM into your process comes with many benefits including:
- Getting a “yes” faster
- The ability to rely on objective, conservative and consistent valuations
- Saving time and money
- Enjoying high accuracy verified by consistent back testing
The Difference is in the Data
AVM data offers a lot of benefits, and so does the data source this data is derived from. All AVM data is run through mathematical models, but providers don’t all use the same sources of data and the differences are worth noting.
What makes Teranet's AVM different?
- Teranet AVM valuations are produced from an authoritative national database complied with authoritative data from government, open and commercial and data sources across Canada.
- We have over 30 years of experience in secured data storage and a history of operating provincial registry systems and commercial business units.
- Teranet continually validates sales transactions as ‘arms-length’.
Whether you use an AVM in the mortgage pre-approval process, to verify home equity or to mitigate risk this convenient tool should be incorporated into your valuations service mix. To learn more about the benefits of AVM and the different data sources available, click here to download Teranet’s whitepaper.
If you’d like to understand how you can incorporate Teranet’s AVM into your valuations toolbox, speak to an account manager today.
