In home equity lending, where precision and efficiency are essential, combining Automated Valuation Models (AVMs) with Property Condition Inspections (PCIs) creates a seamless approach to property valuation. Veros’ VeroVALUE AVM and Valligent’s ValINSPECT PCI work together to provide a comprehensive understanding of property values by integrating advanced market analysis with real-time property insights. This pairing enables lenders to make well-informed decisions quickly and cost-effectively while ensuring valuations are both accurate and reliable. Let’s explore the role of AVMs and PCIs for home equity lenders in greater detail.
The Role of AVMs in Home Equity Lending
Like Veros’ VeroVALUE, AVMs utilize advanced analytics and extensive market data to deliver quick, data-driven property valuations. By analyzing sales trends, property characteristics, and broader market dynamics, AVMs provide lenders with an efficient and reliable way to assess property values while minimizing potential human bias.
The VeroVALUE AVM stands out as an industry leader, delivering accurate, consistent, and transparent valuations nationwide. It is supported by high confidence scores, giving lenders the assurance needed to make informed decisions. Recent Bias and Redlining testing have validated VeroVALUE as a fair and accurate valuation tool.
While AVMs excel in providing robust, market-based value estimates, they may not fully account for a property’s current physical condition. Pairing VeroVALUE with a Property Condition Inspection (PCI), such as Valligent’s ValINSPECT, bridges this gap, offering lenders a complete picture of a property’s value.
Bridging the Gap with Property Condition Inspections
A PCI, like ValINSPECT, provides critical insights into a property’s current condition, identifying wear-and-tear, damage, or necessary repairs. ValINSPECT’s virtual option enables a certified inspector to conduct a video walkthrough using a mobile device, capturing detailed information about the property’s structure and condition directly from a property contact. With geo-location verification and a rigorous manual quality check, ValINSPECT virtual ensures that property condition data is both accurate and accessible to lenders in a timely manner.
The ValINSPECT virtual user-friendly solution requires no app download, keeping costs low while delivering consistent, high-quality data. Lenders gain a holistic understanding of the property by pairing VeroVALUE AVM’s market-driven valuation with ValINSPECT’s real-time property information. This approach flags potential issues—such as deferred maintenance or structural concerns—ensuring valuations reflect both market trends and the property’s physical state, thereby reducing the risk of overvaluation.
Key Benefits of Ordering AVM Plus PCI in Home Equity Lending
By placing one order, get VeroVALUE plus ValINSPECT which offers an efficient well-rounded approach to property valuation. Together, they provide:
- Enhanced Valuation Accuracy & Risk Mitigation
As mentioned above, pairing VeroVALUE AVM with ValINSPECT provides lenders with both data-driven valuations and real-time property assessments, ensuring a comprehensive view. This combination increases valuation accuracy, helping lenders make more confident decisions based on both market data and physical property insights. - Loan Processing Efficiency
While the VeroVALUE AVM delivers near-instant valuations, adding ValINSPECT provides additional valuable insights without significant delays. ValINSPECT virtual inspections can often be scheduled and completed within hours, offering detailed reports that finalize the valuation process quickly. This streamlined approach accelerates loan approvals by reducing uncertainties and improving decision-making. - Cost-Effectiveness
Traditional appraisals can be time-consuming and costly, straining the tight margins which are common in-home equity lending. By combining VeroVALUE with ValINSPECT, lenders access high-quality valuation standards at a reduced cost. This efficient approach helps manage overhead while enhancing profitability, enabling lenders to optimize margins in home equity lending. - Compliance
Regulatory standards and guidelines vary among lenders and may require more comprehensive valuations than a standalone AVM can provide. Combining VeroVALUE with ValINSPECT ensures lenders meet these requirements, reducing the risk of non-compliance. This is particularly valuable for high-value or higher-risk loans or those backed by government entities requiring more stringent evaluations.
Supporting Confidence in Lending
Pairing AVMs with PCIs allows home equity lenders to meet valuation needs efficiently and effectively. This integrated approach delivers fast, accurate insights while simplifying workflows and reducing costs.
To learn more about how VeroVALUE and ValINSPECT can enhance your lending operations, contact us today and download our guide for home equity lenders now.
