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 ?
This article addresses how appraisers can identify the strengths and weaknesses of automated valuation model (AVM) products on the market.
Where there exists a reliable automated valuation model (AVM) estimate on a given property provided by the government-sponsored enterprises, a full appraisal would no longer be needed.
CoreLogic, Santa Ana, California, has introduced OnSite[TM] a new property condition report that contains local market conditions and complements automated valuation model (AVM) reports in order to help regulated financial institutions meet Interagency Appraisal and Evaluation Guidelines for lending.
The innovative, consumer-centric solution delivers useful information specific to an individual's mortgage, property and local housing market by accessing the servicer's data through Black Knight's comprehensive, end-to-end MSP system, as well as the company's industry-leading property records database, advanced analytics and automated valuation models.
Economists at the Federal Reserve recently completed a study that rated homeowners against computer programs -- owners' estimates of their homes' worth versus those from automated valuation models (AVMs) -- and compared both to the actual selling prices of the same homes.
Breakout sessions covered insurance appraisals, evaluations, litigation support, residential adjustments, special-purpose properties, quality control, analysis techniques, market analysis, federal and state appraisal policies, automated valuation models, environmental risk, and waivers, exemptions and threshold levels.
The collaboration with Appraisal Nation, comprises of offering the company`s residential and commercial appraisal services, reviews, evaluations, automated valuation models (AVMs) and broker price opinions.
Additionally, there are some popular websites which provide Automated Valuation Models, or “AVMs”, that can normally be a valuable tool for buyers & sellers.
It is owned by parent company, Calnea Analytics which is a statistical consultancy to banks and financial institutions specialising in the field of automated valuation models.
* greater use of automated valuation models and other collateral evaluation tools for developing appraisals and evaluations; and
* greater use of automated valuation models and other collateral evaluation tools for the development of appraisals and evaluations; and
Information specific to an individual's mortgage, property and local housing market is delivered by accessing the servicer's data through Black Knight's comprehensive, end-to-end MSP system, as well as the company's industry-leading property records database, advanced analytics and automated valuation models.

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