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CMHC offers valiant defense of Emili

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Mortgage Broker News | 12 Oct 2012, 08:00 AM Agree 0
CMHC is now defending its Emili against an onslaught of criticism the system’s database routinely overvalues properties by as much as 5 per cent to 15 per cent.
  • Paolo Di Petta | dipettamortgage.com | 13 Oct 2012, 04:39 AM Agree 0
    Appreciate the quote guys, would also appreciate a linkback, though.

    -P
  • MP | 13 Oct 2012, 04:46 AM Agree 0
    Appraisers aren't perfect either. You could order three appraisals on the same house and get three different values. There is no exact science to valuing a property--it is merely one person's opinion.
  • Paolo Di Petta | dipettamortgage.com | 13 Oct 2012, 08:01 AM Agree 0
    @MP - Appraisers aren't perfect, agreed, but at least they can back up their evaluation with facts. Infact, they need to be licenced and there's a burden of proof on them to validate their valuation upon request.

    AVMs spit out a number with little explanation and often lack the human element - common sense.

    Again, I'm going to point to MPAC's awful AVM system - despite recent sales of similar properties in my area, MPAC has insisted on using less similar properties and less recent sales that are far above the current value of my home. Judging by the numbers, their assessment is approx 50-80k ABOVE market value. Most other AVM's are equally flawed.
  • novascotiaappraiser | 13 Oct 2012, 11:39 PM Agree 0
    Appraisers are industry stakeholders in the wider real estate market. We are sensitive to the consequences of our values and the impact on users of our services. That being said we view the property and analyze it with careful consideration of comparable sales. The sale prices of comparable properties are the basis of our value estimate. We start with comparable sale prices to estimate the sale price ( market value)of the subject which is the true indicator of value. It is not our intention to produce conservative or aggressive values but to be accurate so as to provide information for clients make sound decisions.
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