VeroVALUE - Any experience

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stockrex
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Joined: Sat Mar 09, 2019 6:28 pm

VeroVALUE - Any experience

Post by stockrex » Tue Mar 12, 2019 11:06 am

I am new guy on this forum and I have been reading the threads most of my free time while I am waiting on my flight back home.

My bank did a VeroVALUE of my home and it was much lower than zillow estimate

Zillow was at 375k
Verovalue was t 334k

What other models are used by banks?
What is the core behind Vero's algorithm?

Topic Author
stockrex
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Re: VeroVALUE - Any experience

Post by stockrex » Tue Mar 12, 2019 11:19 am

I forgot to add that the bank did that for my HELOC application. They approved my HELOC.

bryanm
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Re: VeroVALUE - Any experience

Post by bryanm » Tue Mar 12, 2019 11:34 am

These algorithms are complex and varied. However, I find that bank algorithms do provide lower estimates than Zillow. So far as I know, Zillow gives little or no weight to the value assessed for property taxes (its based on comparables). My local bank told me their algorithm started with a property tax assessment value, and then made adjustments. This might explain the discrepancy. For what it's worth, I think Zillow tends to give closer to true market value.

Glad you got the HELOC approved.

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whodidntante
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Re: VeroVALUE - Any experience

Post by whodidntante » Tue Mar 12, 2019 12:17 pm

It makes sense that banks would want to use a conservative estimate for approving a secured line of credit.

Nearly A Moose
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Re: VeroVALUE - Any experience

Post by Nearly A Moose » Tue Mar 12, 2019 8:02 pm

Based on a year of house hunting and buying and selling properties, I’m convinced that Zillow runs high, at least in the DC area. Feels like it tends to 5-10% over market. Redfin is closer but still bullish in my view, h less you’re getting into special types of properties. Can’t say for veroValue.
Pardon typos, I'm probably using my fat thumbs on a tiny phone.

Topic Author
stockrex
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Re: VeroVALUE - Any experience

Post by stockrex » Wed Mar 13, 2019 10:22 am

The bank said if I don't agree with the value I can have them order an appraisal which will be $$$.

The house next to me will come on the market in a few weeks and will sell for more than double what it sold for few months back. It will be interesting how the value changes.

I wonder if anyone can order these valuations, if yes, I am going to order one after the house next to me sells. How long after it sells to the comps update?

bryanm
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Re: VeroVALUE - Any experience

Post by bryanm » Wed Mar 13, 2019 10:51 am

stockrex wrote:
Wed Mar 13, 2019 10:22 am
The bank said if I don't agree with the value I can have them order an appraisal which will be $$$.

The house next to me will come on the market in a few weeks and will sell for more than double what it sold for few months back. It will be interesting how the value changes.

I wonder if anyone can order these valuations, if yes, I am going to order one after the house next to me sells. How long after it sells to the comps update?
I can't speak for VeroValue, but AFAIK Zillow and other online services are nearly immediate. If VeroValue is based on tax value assessment it may not change much with new comps.

Seems to be you might have the best of all worlds: low taxes, high property value, and the HELOC you asked for.

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stockrex
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Re: VeroVALUE - Any experience

Post by stockrex » Thu Mar 14, 2019 7:58 am

I did not think of it like that, I agree, it is best for me to keep the home value low

I wonder if I do a cash out refi, will the city reassess me and raise my taxes. Don't understand how that works.
There needs to an actual sale for the assessed value to the same as sale value/loan value?

Trism
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Re: VeroVALUE - Any experience

Post by Trism » Sat Mar 16, 2019 4:55 pm

Other AVMs (automated valuation models) include:

Clearview
Home Value Explorer (is - or at least was - a Freddie Mac product)
i-Val
PASS
SiteXValue
ValuePoint4
ValueSure

Some lenders use a cascading valuation product, where they'll first try an AVM, and if the data is rich enough to provide a reliable value estimate the process stops. If the AVM is no hit, or has a low confidence score, a more traditional valuation (BPO, drive-by or full appraisal) is ordered.

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