Home Value Explorer® (HVE®) is a Freddie Mac Automated Valuation Model (AVM) tool that generates an estimate of property value in seconds. HVE encompasses several models rolled into a single product, for one low cost. HVE uses Freddie Mac's unique proprietary algorithm that blendsmodel estimates returned by our repeat sales model and hedonic model, which is considered ourcombining process. HVE provides extensive coverage of all 50 states and more than 3100 counties with its database of approximately 81 million property records. HVE data simplifies the mortgage process by streamlining the collateral valuation cycle.
For more than 20 years, Freddie Mac has effectively employed AVMs internally for its own risk and portfolio management. AVMs have become an integral part of today's mortgage market, and AVM technology has advanced the world of automated valuation services from novelty to necessity. Today, AVMs are efficient, effective, and essential tools for staying competitive. AVMs expedite processes, lower costs, and minimize risk. When choosing an AVM, it's important to consider coverage, vendor reputation, current technology, accuracy, and price. Freddie Mac's dedicated team of modeling experts continues to improve and enhance the HVE tool. In nationwide tests conducted by large wholesale lenders, HVE consistently performs at the top in the areas of coverage, accuracy, and reliability.
In addition to the estimated value of a property, HVE reports provide a Confidence Level and aForecast Standard Deviation, which indicate the accuracy of the estimated value
HVE reports provide a list of recent neighborhood sales within a 1-mile radius of a subject property sold within the last year. Up to 10 properties can be listed. However, the Repeat Sales section on an HVE report is not comparable sales data that an appraiser would provide to substantiate their valuation. It is informational only. It is intended to be a list of properties within a specific distance from the subject property (~ 1 mile) and have hedonic information in common with the subject property. Recent sales information is only one variable in the code that generates a valuation.
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