AUTOMATED VALUATION MODEL AVM

A service that uses mathematical modeling to value properties. The majority of automated valuation models (AVMs) compare the values of similar properties at the same point in time. Many appraisers, and even Wall Street, use this type of model to value residential properties. While these models are quick and cheap, they do not factor in the condition of the property to determine its value.

AVM reports are driven by technology and can be obtained in seconds by lenders and agents. They usually contain both a hedonic model and a repeat sales index, which are both weighed and analyzed in order to generate the price estimate. AVMs usually include the tax assessor's value, all pertinent information on the property in question, such as its sales history, and an analysis of the sales of like-kind properties.