Automated Valuation Models (AVMs) often fail to account for zoning regulations and subdivision potential, which can significantly impact property value; experienced real estate professionals can identify development opportunities that algorithms miss, potentially revealing true value far exceeding AVM estimates.
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Real Estate AVMs vs. Zoning: Maximize Property Value #shortsAdded:
I was looking at buying I've looked at some properties where our estimate and every other estimate online said it was worth two million bucks.
But the property you could you literally cut into six blocks and it changes the price of what that thing is. An AVM's going to see history. It's going to see what it sold for 30 years ago. It doesn't really see what you can and can't do with that property from a zoning perspective, an overlay perspective, and that's why I never trust any CRM.
So like this one here I think was uh this is a basic one, but yeah, the other one it turned like a two million dollar AVM into a six million dollar target price.
So and anyone with experience would have gotten that, but an AVM will never get that.
So it's always just a starting point.
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