Banks have regulations for this and it is generally 80% of the current market value of the property. 

Those providers have FDIC regulations and more knowledge/expertise in that realm than any PM software company. 

Sure they could be cramming 3 beds per room or something (although most regulations have a max bed count, like 2 per room +2 more), but my guess is they are providing something more then numbers can just estimate, like experience. 

If it isn't serious enough to get government involved then it isn't serious enough to break a legal contract 

No It needs to be your primary residence single family home in order to leaglly pull a permit as a homeowner in nj. if you dont know the uniform construction code, international residential code, dont have a background in construction and dont know the rules and regulations for this state the inspectors will eat you alive on a major project.

The regulations contain four examples to illustrate what “substantially the same” means.

I know city government can be kind a nitpicky sometimes; is it better to ask for permission and explain my strategy to the city?

Which is fine until someone builds a enclosed porch over the front yard. next I would check the gas meter if it's in the basement and see if the pressure regulator vent is piped outside. 

There's no regulation and the majority of the claims I see are fraudulent.

Hi there -Looking into Denver, the unrelated persons regulation for a single family home is extremely tight - two unrelated peoples.