Home valuations are determined by using 3rd party automated tools, which analyze various factors such as recent sales of comparable properties, market trends, and property characteristics to provide an estimated value. These automated valuation models (AVMs) leverage extensive databases and algorithms to offer quick and cost-effective assessments of property worth. However, in certain situations where a more precise valuation is required—such as for a mortgage refinance, or when significant renovations have occurred—clients may opt to pay for appraisals through a 3rd party appraisal management company.
This option offers a comprehensive evaluation conducted by a licensed appraiser who inspects the property firsthand, ensuring a thorough analysis that takes into account not only the numerical data but also the condition of the property and its unique attributes.