automated valuation model

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Automated Valuation Model

A computer model that estimates the value of a piece of real estate. While it is not as detailed as a full appraisal of the property, the automated valuation model is used as a substitute in some situations, such as the extension of a second mortgage or the assessment of property taxes. It is not used in considering a primary mortgage, which requires an appraisal.

automated valuation model (AVM)

Originally a computerized method of estimating large numbers of property values in an efficient,if not entirely accurate,manner;frequently used by tax appraisers to periodically reappraise properties for purposes of real estate taxes. A disgruntled property owner may appeal the valuation and present evidence the computer made a mistake in that particular instance. Today, AVM artificial intelligence has progressed to the level of respectability that lenders use it to appraise property for mortgage loan purposes and the IRS uses it to evaluate a taxpayer's assets.

References in periodicals archive ?
Designed for the delivery speed demanded by the current real estate-financing environment, Collateral Profile is an alternative product that bridges the gap between automated valuation models and traditional valuation products," said Gugenheim.
First American Mortgage Solutions was named as an approved distributor based on the company's long-standing history as a leading reseller of several Automated Valuation Models (AVMs) - specifically Freddie Mac's AVM, Home Value Explorer (HVE) to lenders, servicers and investors.
The firm's solutions include property data and analytics, appraisals and non-appraisal evaluations, flood determinations, mortgage credit reports, automated valuation models, automated decisioning software, title insurance and property information, property research portals and marketing tools.
Specifically, the rule requires lenders to tell mortgage applicants within three days of applying for a first mortgage that they are entitled to receive a free copy of any valuation (including appraisals, automated valuation models and broker price opinions) after the reports are completed or three days before the loan closes, whichever comes first.
And unlike most automated valuation models (AVMs), users can specify the desired accuracy level based on the requirements of individual portfolios, according to DataQuick.
The company offers both residential and commercial real estate valuation products including broker price opinions (BPOs), real estate appraisals, automated valuation models (AVMs), property photo and condition reports, retrospective valuations, commercial valuations and reconciliation/review products.
Among other responsibilities, the ASC is authorized to develop a grant program for state appraiser regulatory agencies to assist with enforcement, develop regulations in specific areas like enforcement, develop a hot line on appraisal independence and help develop quality control standards for automated valuation models.
The magazine article asserted that automated valuation models could be used to avoid unnecessary appraisals.
The company offers both residential and commercial valuation products including BPOs, appraisals, automated valuation models (AVMs), photo and condition reports, retrospective valuations, commercial valuations and reconciliation/review products.
The current value was estimated by using the CoreLogic automated valuation models (AVMs) for residential properties.

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