Online Property Valuation – Automated Property Valuation (AVM) vs. Emili

There are so many tools available to lenders, underwriters and insurers these days, and it often seems as though they all do the same thing, especially when it comes to validating property value. There are so many different ways that property value can be verified: through a drive-by appraisal, through a full appraisal, through an AVM (automated property valuation) and more.

Some lenders rely primarily on whether or not their insurer concurs with the value of the property. This is because, in the case of CMHC, they have a proprietary approval system, Emili.

Emili is used to validate homeowner information, pre-qualify a borrower for the purchase or refinance of a property and evaluate risk. Emili evaluates both the borrower’s and the property’s information. Emili will agree or disagree with the value of a property stated on a mortgage application. The issue with this is that relying on the insurer running the property through their property valuation tool only tells you if they agree or disagree with the value.

Lenders often confuse this and think that Emili is simply CMHC’s way to appraise the value of a property, when really it is their entire approval system, and concurring with property value is merely one component.

An automated valuation model AVM is a computer program that provides a real estate market analysis and estimate of a property’s value. When you generate your own automated property valuation the value is based on, among other things, comparable sales in a given neighbourhood. It also provides an actual value.

Using automated property valuation, you are empowered because you can quickly identify deals where the value is less than stated and not waste your time or the time of your partners. On the flipside, you may identify properties where there is significantly more equity and package the deal for the insurer with an upsell such as a home equity line of credit. The more you know about the applications that are being underwritten by your organization, the more opportunity you have to ensure that good deals get funded, bad deals do not, and deals that can be saved get saved.

If you would like more information about how to obtain automated property valuations please visit www.purview.ca/lenders. If you are a Purview For Lenders client and would like more information about how to generate property valuations please click here to watch a brief video.