Things an automated or non-appraiser valuation won't/can't tell you

Homeowners using free online home value calculators as well as lenders and brokers using Automated Valuation Models (AVMs) are at risk of getting outdated and often inaccurate data.  They need to know what these models are not telling them.

Is there a house really there?  A computer can't drive by a house to see if its even located where its supposed to be, has walls and a roof, or even if its really a five bedroom colonial and not a one room shack.

Does it have unique features that may add or detract from its value?  The computer estimate says the house has a value of $350,000 but it does not have the ability to account for the railroad tracks behind the house with a midnight train complete with whistles?  It is also unable to differentiate between a quiet tree lined street versus a noisy intersection.

Is the data current?  Many states require assessments only every three years.  Since many free online services and AVMs rely on public records, in this case, you risk a value lower than reality.

What makes the comparables comparable.  While the computer may compare your subject property to another with similar square footage within a quarter of a mile, it doesn't know that the school district is less desirable or that the property was sold under duress, such as in a divorce.  A computer simply cannot know or make all the adjustments that might be needed to comparable properties.

Is the market declining?  Our current market is a perfect example of how rapidly things can and do change in a local housing market.  A professional appraiser knows their market is experiencing a downturn.  A computer looking a sales completed at the peak of the market will think the trend is continuing upwards.  As a lender, do you want to be stuck with a property that's been overvalued by a computer?

What experience, education and qualifications does the preparer of the value have?  It takes less than 2 minutes to go the the website for Virginia's Department of Professional and Occupational Regulation (www.dpor.virginia.gov) and verify that an appraiser is licensed, how long they have been licensed and whether they have any closed complaints against them. (Current Virginia Code prevents open complaint information to be disclosed prior to being adjudicated).  You have no idea what qualifications the person had who entered the data into the computer, where the data came from or if it was verified.