How does Point determine my property value?

Since Point calculates your repayment based on your property's change in value over the course of the contract, we need to determine an initial value and an ending value.

Determining the initial value

Before the home valuation, Point uses your self-reported home value to calculate how much you could get and the terms of your initial offer. After you submit your documents and we move forward with your application, we obtain a property valuation to determine the actual value of your home. We adjust this value down to set the Appreciation Starting Value for the contract. We adjust it down in order to protect our investment from depreciation.

Determining the ending value

When you're ready to pay Point back, there are a few options for determining the ending value. If you're selling your home, we'll review the purchase contract to determine if Point can use the sale price. If you repay Point through a refinance or another source of cash, we'll determine the property's value using an appraisal by a licensed and independent appraiser, an automated valuation model (a computer-generated property estimate), or a broker price opinion (an estimate from a real estate broker).