What is an AVM?
Automated Valuation Models (AVMs) are computer programs that provide real estate market analysis and estimates of value for individual properties. AVMs can vary greatly in quality and scope, depending on the type of data, completeness of data, and model design. They are being used across North America in many different financial decision making processes, including lending, mortgage insurance, and even by Professional Appraisers in support of their own value estimates. Most AVMs use public records or Tax Assessment records to amass large databases of comparable property information in order to provide widespread coverage of a market area. Sales information is then added to the historical data on cycles (yearly, monthly, weekly) to update the models for the changes in market conditions over time. While an AVM can simulate a property appraisal, it DOES NOT replace a Full Appraisal by a certified human appraiser. AVMs will not work in areas with largely varying house prices, unique proper
