Downward Pressure from Computer Generated Appraisals

In an effort to cut costs, many lenders have turned to computer generated appraisals over the past few years. While some appraisals include a drive-by, or in home visit, the Automated Valuation Models (AVM) have become increasingly important. A recent press release from Fiserv, Inc. a leading provider of computer generated appraisal services, will add additional downward pressure home valuations in Tampa. Rather than focusing on past sales data, the new computer models will incorporate a 12-month Forecast Value based upon the Case-Shiller® Home Price Index. The Case-Shiller® Tampa forecast is one of the most bearish future indicators, and we expect this to negatively impact appraisals.   – by Dale Bohannon