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| February 2003 |
A Publication of
ELLIOTT® & Company Appraisers |
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AVM Has Its Place,
But Won't Replace Traditional Appraisal |
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 The Automated Valuation Model (AVM) is becoming accepted as a
collateral assessment tool in connection with some mortgage loans.
AVMs are computer-generated appraisals, developed from general
real-estate data, including multiple-listing services, county property-tax
departments and local register-of-deeds offices. Statistical models of
varying levels of sophistication are applied to this data. The results of
these appraisals vary from being very reliable to being worthless and
misleading, depending on the availability of relevant data and the use of
appropriate statistical models.
The advantages of using an AVM in lieu of a traditional appraisal are
speed and cost.
However, without property inspection, appraiser reasoning and accurate
data, the value of an AVM is limited, especially if the borrower has a low credit
rating or there is a high loan-to-value ratio.
Therefore, the need for the traditional appraisal is still with us. There is also, however, a need for the AVM, and when properly
used it does, and will, enjoy a segment of the appraisal marketplace not
usually served by the traditional appraisal. |
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Nevada Is
Fastest Growing State |
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 For the 16th consecutive year, according to U.S.
Census Bureau research, Nevada has been the fastest growing state in the
country. During the 12-month period ending July 1, 2002, Nevada's population
grew by 3.6%. rounding out the top five states in growth for this period were
Arizona (2.8%), Florida (2.1%), Texas (1.9%) and Georgia (1.8%).
The only state to lose population during the year
was North Dakota
(-0.4%). Washington, D.C., also lost population (-0.5%) during this period, but
Loudoun County, Va., in the suburbs of the nation's capital was one of only six
countries in the United States to obtain double-digit growth during the year.
Four of the five others (Forsyth, Henry, Newton and Paulding counties in
Georgia) are in the greater Atlanta area. The sixth, Wilson County, Texas, is in
suburban Austin. |
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News From Freddie
Mac and Fannie Mae |
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Both Freddie Mac and Fannie Mae increased by 7.3%
their maximum mortgage amounts at the beginning of 2003 due to the increase in
the national average price for single-family homes. ... Freddie Mac has launched CreditSmart Espanol, a bilingual credit-education program designed to teach
Latin Americans how to manage money, use credit and purchase homes. |
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Quotes
of Wisdom and Wit |
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"Good judgment comes from experience;
experience comes from bad judgment."
-Barry LePatner
"Never interrupt your enemy while he is making a
mistake." -
Napoleon Bonaparte
"An economist is an expert who will know tomorrow
why the things he predicted yesterday didn't happen today."
-Laurence Peter
"Concentration comes out of a combination of
confidence and hunger."
-Arnold
Palmer
"A lie gets halfway around the world before the
truth has a chance to get its pants on." -Winston
Churchill
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ELLIOTT® & Company Appraisers
currently offers appraisal service throughout all 50 of the United
States. Clients are encouraged to place orders directly to any
office local to properties to be appraised or to the central office
for assignment.
Orders may
be placed via telephone, fax or through the company's Web site. All
Internet orders will be processed through the central office.
Some
Offices Are Independently Owned and Operated
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3316-A Battleground Avenue
Greensboro, NC 27410
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