Property Valuation
A Texas appraiser performing an appraisal on a Dallas single-family home uses an automated valuation model (AVM) as supporting data. AVMs are:
AA complete replacement for a USPAP-compliant appraisal
BComputer-generated estimates useful for reference but not a substitute for a credible USPAP appraisal✓ Correct
CApproved by TREC for all lending purposes
DMore accurate than a traditional appraisal in all cases
Explanation
AVMs (like Zillow's Zestimate) are computer-generated estimates based on public data. They can provide useful reference data but are not USPAP-compliant appraisals and are not an acceptable substitute for a certified appraisal for most lending purposes.
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