|A new home valuation service promises to save mortgage companies the cost of a full appraisal while providing a better value than automated valuation models or broker price opinions.
Similar Sales Inc. said Monday that it offers an appraiser opinion of value for just 10 percent of the cost of a full residential appraisal report.
The Farmington Hills, Mich.-based company said its benchmark report, Similar Sales Desktop Valuation Report, utilizes a state-licensed real estate appraisers to estimate market value. The appraiser assumes the home is in average condition and that there are no negative internal or external factors.
Similar Sales said its summary appraisal report is far more credible than an AVM -- which its said is "notoriously unreliable" in a declining market. The report combines the experience of an appraiser with the convenience and affordability of an AVM.
The report is "a preferred alternative to a BPO prepared by a real estate professional or an unlicensed analyst" because state-licensed appraisers comply with the Uniform Standards of Professional Appraisal Practice, the company says on its Web site.
The cost of the summary report can be applied to a full appraisal on the same property.