Whether you are a property owner ready to sell your estate, a home-seeking buyer, or an aspiring realtor, there’s something you must know about before diving deeper into the real estate industry. You must know or at least have some idea about what is RVM Value in Real Estate. You must know what it is besides how it works and why it matters.
Let’s take this time to understand the Realtors Valuation Model, also known as RVM with Estate Adepts. We shall also take notice of how RVM is different from AVM.
Seeking an answer to what is RVM in real estate terms?
Read on to know.
What is Property Valuation?
As understood from its name, RVM (Realtors Valuation Model), is one of the many property valuation tools. It is often used by real estate agents to assess the value of the estates (properties). But it makes sense to understand what does property valuation means before discussing one of its models. So, let’s get to it.
As an owner, you must have an idea about the value your property holds in the present market before you list your estate for selling via a listing agent and broker. In case, you are a buyer willing to invest in new real estate property, you must consider the property valuation before offering a price to any seller for his property. And if you are an aspiring agent, chances are, you might expect clients willing to conduct property valuation before proceeding ahead with the real estate transaction. This is where the property valuation comes into role.
Explained in the simplest terms, property valuation is an assessment of the property’s value on the grounds of its present condition, location, and other factors like market price. You can approach a surveyor (or Realtor) to get the valuation report of your estate.
What is RVM in Real Estate Terms?
As a prudent seller or buyer, you might make efforts to get a valuation property report of the estate you are dealing with. While naïve and inexperienced people approach the AVM model before listing their property or purchasing one, a smart buyer/seller resorts to the RVM model or contacts a licensed realtor.
But the question is, what is RVM Value in real estate?
Here’s an answer!
Realtors Valuation Model often known as RVM is an advanced automated valuation tool developed by the National Association of Realtors. Unlike the AVM or Automated Valuation Model, RVM or Realtors Valuation Model is more powerful, accurate, and better at pricing homes in the market. The model helps the realtors understand the local market dynamics efficiently and the better price of the real estate properties they are dealing with. The RVM value model was developed to be used in Realtors Property Resource (acronymized as RPR).
Due to its highly technical nature, the folks do not seem to be familiar with the model. While you are at it, you must know that the RVM value of the home is calculated using the information available publicly. However, that’s not the only factor the RVM model uses to determine the home price. It also takes into account the MLS active (Multiple Listing Services), sold a record of the property, and off-market data. RVM thus happens to be a lot more accurate and powerful model to price real estate properties than the Automated Valuation Model or AVM.
Why RVM Valuation Model is Needed?
Firstly, know that real estate is a luxury not everyone can easily afford. It takes years of savings to buy and dire scenarios to sell one unless you are a real estate agent. As an owner, you will want to sell your property at the best realistic price possible. If you are a buyer, you will want to pay only the amount that the property deserves. For an aspiring or an industry expert real estate agent, preparing an accurate valuation report is necessary to succeed in the business.
It eventually means, whatever the role you play at the table closing, the valuation of the estate is just as essential. And under no circumstances will you want to seal the deal on an automated, unrealistic, or inaccurate asking price. Taking into account the listing data, market dynamics, public information, and condition of the property, RVM becomes a much-needed model for property valuation.
And exactly as mentioned above, the Realtors Valuation Model is a very accurate, powerful, and better model for real estate valuation products (homes, lands, buildings, flats, apartments, etc.).
Benefits of RVM
In the technical world that we live in, traditional tools are no longer as efficient and accurate as highly technical tools. The same goes for the RVM property valuation model developed by the National Association of Realtors. Keep reading to discover the advantages of using the RVM or Realtors Valuation Model to determine the property’s estimated value. Keep in mind that RVM estimates the as-close-to-reality-as possible value of your property using MLS data, market dynamics, and proprietary algorithms to price estates.
- Accurate price calculation Valuation based on real-time statistics
- Speedy valuation reports
- Use of active MLS (multiple listing services)
- Updated and detailed information
- Assists in setting the asking price
- Assists in finding affordable property and estates
Difference Between RVM and AVM
Now that we have some basic knowledge about the RVM aka, Realtors Valuation Model, we know how similar the two most popular property valuation models RVM and AVM are. It thus makes sense to how the difference between the two.
The key difference between the Automated Valuation Model and Realtors Valuation Model is the use of MLS data, condition of the property, and market dynamics. While the AVM uses proprietary algorithms to estimate the property valuation, RVM considers publicly available data besides the data available only on MLS listings. Unlike AVM, RVM also counts the present condition of the property to estimate its realistic value. It is because a house with a damaged interior would never receive a price as good as the one well-maintain. Thus, considering the present condition of the property is just as important.
RVM model of property valuation is not only time-effective and accurate it is profitable too. It is an ideal choice to determine the property’s value in the market. If you found this blog helpful, share your feedback in the comment section below.