How automated valuations work
An automated valuation model, or AVM, estimates your home's value using data: recent sales nearby, property records, tax assessments and market trends. It's fast and doesn't require anyone to visit your home.
Lenders use AVMs most often when the loan is a smaller share of the home's value and the home is a typical one for its area, with plenty of similar sales to compare.
How CapCenter handles it
For CapCenter home equity loans, an appraisal isn't required in most cases. That can help the loan move faster and means no one needs to schedule a visit.
If an appraisal is required and provided by an approved agent, the fee is covered under CapCenter's ZERO Closing Costs offer.
When a full appraisal may be needed
- A larger loan amount compared with the home's value
- A home that's unusual for its area, such as a large lot or custom build
- Few recent sales nearby to compare with
- Recent major renovations that public data may not reflect
- An automated estimate that can't be confirmed with confidence
Pros and limits of an automated value
An AVM is quick and convenient. But it can't see inside your home. It may miss a new kitchen, a finished basement or recent repairs. It may also miss problems. If your home has changed a lot since it was last sold, the estimate could be lower or higher than what an appraiser would find.
If you think the value is low
Tell your loan consultant. Share details on recent improvements, with dates and costs, and any recent nearby sales you know about. In some cases, a full appraisal may be ordered. A loan consultant can explain your options.
How to help the valuation go smoothly
Whether your value comes from an AVM or an appraiser, good records help. Gather them before you apply so you can answer questions quickly.
- A list of major improvements, with dates and costs
- Permits for additions or finished space
- Your most recent property tax assessment
- Any recent nearby sales you know of
Other home equity basics
CapCenter offers fixed-rate home equity loans from $50,000 to $250,000, with 15, 20 or 30-year terms, on single-family primary residences and second homes. Most close in a few weeks. You need a credit score of at least 620 for a CapCenter loan.
