Physical inspections are set to become a thing of the past for mortgage lenders as automated valuation models claims Hometrack.
The claim comesa afer Hometrack’s Realtime Valuation System has been given a seal of approval ratings company Standard and Poores issued guidelines on Automated Valuation Models (AVMs) which Hometrack claims demonstrates they are as accurate as a surveyor’s physical inspection as possible.
Hometrack’s AVM utilises its database of over twelve million property records to undertake online valuations for lenders. It says the online valuation service significantly reduces costs for mortgage lenders as the AVM offers a much faster and less expensive valuation procedure.
It says its platform is also the only AVM that is indemnified so lenders are protected against valuation errors of over 10% at up to 90% of the loan to value (LTV) ratio. Which the property research firm says enables enders to take a quantified risk when using the software.
Mark Witherspoon, chief executive of Hometrack says: “We are delighted that the AVM is increasingly being recognised as the default valuation method replacing both drive-bys and physical valuations. The service we offer undoubtedly enhances mortgage lenders’ business operations by both improving customer service and delivering immediate cost savings. Furthermore, with the advent of the Home Information Packs (HIPs), the market needs this innovation to support the home-buying process”
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