Automated Valuation Models (AVMs)

Automated Valuation Models (AVMs) are computer-based systems that estimate the value of a property. They analyze various data sources, such as recent property sales, tax assessments, and market trends, using algorithms to generate a property’s estimated worth quickly. AVMs are often used by banks, real estate agents, and appraisers to streamline the valuation process, making it faster and often more cost-effective than traditional methods. However, while they provide useful estimates, they might not capture unique characteristics of a property that a human appraiser would consider.