HomeSmartReports has gone several steps beyond any previous efforts by companies in developing a methodology that applies both science and technology to the process of buying or selling a home. HomeSmart Report gathers in a vast amount of data in close proximity to a home being sold or purchased and analyzes the area around it for stability, volatility, sales volume, value changes, property flipping and other factors that can influence value in the longer term. HomeSmart Value Report applies a scientific approach to estimating market value of properties by using statistics and mathematics. Examining the relationships between the house that is being bought or sold and sales that have occurred in the area over time create this value estimate.
HomeSmart Report gives you a unique and meaningful look at the area (data) near and around the home you are considering. By examining area value changes, foreclosure activity, market stability or volatility, site influencing factors and other details, we provide insight as to how the area around the home has performed over time. While the distant or recent past is not a guarantee of the future HomeSmart Report does provide a multifaceted look at the factors that tend to have a significant influence on property values over time. It is an indicator of the extent to which further research should be conducted in the surrounding area prior to entering into a transaction to buy a home. [MORE]
HomeSmart Value Report is an extremely well tested approach to home market valuation. It is called Automated Valuation Modeling (or AVM). Major financial institutions and Wall Street investment firms have relied on AVM tools for more than a decade to help them understand both property value and risk associated with the real estate loan investments they make. HomeSmartValue is an AVM tool that HomeSmartReports has brought to homebuyers and home sellers. It applies science to property information using statistics, mathematics and other scientific disciplines applied in a real world situation…that of home valuation. The AVM provides an estimate of value for a home and also a low and high amount based on statistical variance, within which property values typically range. [MORE]
Our information resource tools are available right now and on a national scale. Read the more in-depth product descriptions to gain a deeper understanding of the specific products.
HomeSmart Report was designed to give home buyers and owners an in-depth look at the factors influencing home values in both the short term and the long term. More than just a value estimate of an individual property, HomeSmart Report reviews real estate transaction activity in the area surrounding the property being considered.
Over time areas develop “performance metrics” related to property transactions. For example, let’s assume that the annual property turnover in an area is 15% per year. If, all of a sudden, the turnover rate goes to 22% per year that could be indicative of a major market event. Perhaps the area is in high demand and sellers are cashing in on it. Maybe a major area employer closed down a plant and people are just trying to get out from under their property. Another scenario could be a property-flipping scheme where values are being artificially inflated. Perhaps foreclosure rates are escalating. These factors and others suggest certain dependable trends over time. If the local market deviates from such normal trends there may be cause for concern.
HomeSmart Report reviews sales activity in depth. It also reviews prices, sale volume, high and low price ranges, cost per square foot, market deviations, same property sales, foreclosure events, bank owned properties, site influencing factors and other variables to assess current market conditions. This information is tracked over time so that market “norms” are established. In that manner a smaller time segment of market activity can be compared against the normal market activity over a longer period. The analysis determines if there are significant deviations in the current market from what is “usual” market performance. The HomeSmartReport then issues a weighted value (Market Volatility Factor) and suggests if further research should be conducted prior to pursuing a sale or purchase.
The report includes:
An area summary analysis
Subject property information including property characteristics when available
Property sales history
Nearby sales information
Recently “sold” property analyses
Market data summary
Aerial image, if available
This is the type of information you need to know if the area sales and market activity supports the financial decision you are about to make. Financial considerations are not the only factors; people must like the home they are about to purchase. However, understanding the area sales activity is a very important consideration. HomeSmart Report will give you important added information in support of your ultimate decision to buy or sell your home.
The HomeSmartReport is available nationally (by locale) at www.homesmartreports.com.
HomeSmart Value Report.
HomeSmart Value Report utilizes one of the most important information developments in the real estate business in the last 15 years: Automated Valuation Modeling (AVM). AVM has been a well-kept secret by the mortgage lending and appraisal industries for many years. Mortgage lenders like AVM because it is fast, inexpensive and quite accurate in estimating a property’s market value. Appraisers don’t like AVM because it is fast, inexpensive and is quite accurate in estimating a property’s market value. The good news for the consumer is that this scientific property valuation discipline has earned the respect of the real estate industries toughest critics. They use it because it is effective. Now you have access to this same technology.
AVM draws upon available sales data in a local market, and uses it as a comparison to the property being valued. That is, how do the characteristics, sale price, sale date and other attributes of the property being valued compare to the properties that have sold recently, and over time? Measuring value changes over time allows the AVM to assess the trend of activity that has occurred. Analyzing current sales against the property being valued allows the AVM to “true up” against recent market activity. HomeSmart Value Report then utilizes these attributes to render a current value estimate.
The AVM application uses scientific methods that employ statistics and mathematics and apply large amounts of data to the AVM for analysis. Properties are compared to one another, and to the subject property for similarities and differences. Based on the data comparison, the model utilizes some properties and discards others in its assessment. For example, if the subject property is 2,500 square feet and one of the sales has 6,000 square feet, that sale may be discarded because of its dissimilarities.
One important note is that AVM’s are very objective in their treatment of data. They do not factor in buyers and sellers emotions. They go by data and more data and could care less about that beautiful crown molding in the living room, or the beautifully landscaped garden. So, while they tend to be very accurate in terms of the market activity analysis, it is left to the buyers and sellers to make value adjustments based on how much it adds for them in terms of overall value. At the same time, this “cold” objectivity of AVM also serves to protect buyers and sellers from significant overvaluation and major undervaluation.
The product will provide a market value estimate as well as a high and low estimate based on a standard deviation calculation inherent in all statistical estimates. HomeSmart Value Report will also provide sales information and additional analysis to further support the value range.
HomeSmartValue is presently available nationally and can be ordered here: www.homesmartreports.com. It focuses on the local area value estimates, using sales information local to the area around the property being valued.