The art of AVMs

The art portion of estimating value begins with understanding how comparable sales and active listings compare to property being evaluated. Since they are nearby, it’s a good idea to drive by comparable sales and listed properties to see how they compare. To help you stay organized, you may want to use a buyer checklist when visiting properties.

After researching comparable sales and active listings, it’s time for personal touch. Sellers know their own property and neighborhood better than anyone, so they are able to adjust base values according to individual property characteristics. Buyers can make similar adjustments as they visit properties to help formulate an asking price.

Depending on your research, a “market adjustment” may be warranted. If active listings are priced higher than your base estimated value, an upward adjustment may be appropriate. If prices are lower, a downward adjustment might be in order.

Finally, ValueKey enables buyers and sellers to make other value adjustments based on individual property characteristics and condition. Based on a seller’s knowledge or a buyer’s research, appropriate value adjustments can help both parties arrive at a fair selling price.

And though no property valuation system is perfect, AVMs can provide objective valuation estimates quickly and inexpensively, and technology is improving all time. As AVM technology continues to evolve and improve, it may prove to be a key to less-stress, more enlightened real estate transactions in future.

Learn more at http://www.homekeys.net

The zero down rental property loans are structured as an 80/20 loan. In other words you are getting two loans. A first mortgage at 80% of purchase price and a second mortgage at 20% of purchase price. You also have several other options as far as choosing an ARM, a fixed rate product, or interest only. These loans also have pre-payment penalties. Unless you live in a state where pre-payment penalties are not allowed. Often time you can have seller pay up to 2% of purchase price towards your closing costs. If you get seller to agree to this. You may only have to come in with 1.5% to 2% of purchase yourself in closing costs.

If you truly want to buy rental property with zero down. You will want to call your local mortgage broker and find out more information or even see if you qualify. Of course if they do not offer this type of program keep calling until you find someone who does.