http://www.realestateappraisertips.com/ - Home Appraisers: NAR Trying To Replace Appraisers With Realtor RVMs…Why Are We Appraisers Forced To Pay NAR Dues Again?
I was reading through the Active Rain “Top 10 Real Estate Events Of 2009“, written by Stefan Swanepoel, and was struck by his #7 “RVM’s and AVM’s Become Strategic“. I quote:
“AVM (Automated Valuation Model) is the term widely used to describe providing property valuation by using a mathematical algorithm based on the data. In real estate AVMs calculate the value of a specific property by analyzing the value of comparable properties sold and registered. The newly announced RVM (Realtor® Valuation Model) follows the same mathematical analysis but hopes to aggregate the information available from 700+ MLS’ (Multiple Listing Service) across the country. The NAR, the driver behind the RVM, hopes that this model will become the default valuation method for all financial institutions nationwide. If achieved, this will be a major industry game changer.”
So, the NAR, the organization that Real Estate Appraisers are FORCED to pay approx. $450/year to in membership dues, is the organization trying to replace appraisers with their Realtor members providing valuation products? That’s certainly what this sounds like to me.
I Thought Appraisers Were Making Progress Against BPOs And AVMs. I guess I may be a little niave on this topic because after attending Valuation 2009 and keeping up with industry news, I thought appraisers and appraiser organizations were making headway in opposing the use of Realtor BPOs, and/or AVMs. I thought, to some extent, that it was the lacks valuation methods allowed of using AVMs that became part of the reason the US in this financial crisis. Now I find out that 2010 will include more competition for valuation products and services, but this time from my own FORCED predominant NAR Realtor membership and their control of the 700+ MLS System’s data?
If there was ever a time in the history of appraisers and appraiser organizations not having adequate representation, as a profession, then the first decade of the 2000s are a prime example. RVMs, pushed by the huge NAR Lobby on Capital Hill, could have a negative impact on appraisers and be a threat to our nation’s economic stability going forward. There’s no question that AVMs have been shown to be unreliable as indicators of market value. And now, our own NAR wants to push RVMs as “the default valuation method for all financial institutions nationwide”? Are RVMs any more reliable than AVMs? It doesn’t sound like it!
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