Automated Valuation Models (AVM)
Automated Valuation Model (AVM) is the name given to a service that can provide property valuations using mathematical modelling combined with a database. Most AVMs calculate a property’s value at a specific point in time by analysing values of comparable properties. As well as this some look at previous surveyor valuations, historical house price movements and user inputs (i.e. number of bedrooms, home improvement spend, etc.).
AVM is short for "Automated Valuation Model". Appraisers, Wall Street and Lending Institutions all use AVM technology in their analysis of residential property. An AVM is a residential Valuation Report that can be obtained in a matter of seconds. It is a technology driven report. The product of an automated valuation technology analysis, public record data, and computer decision logic combined to provide a logical calculated estimate of a probable selling price of a residential property. An AVM generally uses a combination of two types of evaluation, the running of a hedonic model and a repeat sales index. The results of each are weighed, analyzed and then reported as a final estimate of value based on a requested reasoning date. AVM technology reports are delivered over the Internet via any standard web browser.
AVM Descriptions
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HVE® is the most
precise AVM available and offers true national coverage with data in over
2,400 counties. HVE® actually encompasses several models
rolled into a single product, for one low cost. When you use HVE®
you benefit from Freddie Mac's Combining Process, which is a unique
proprietary algorithm that blends multiple model estimates returned by the
Repeat Sales model and the Hedonic model. This process is able to provide a
more accurate estimate than either model would on its own.
Confidence Scores: H (High), M (Medium), L (Low)
ValuePoint®4 by
ValuePoint®4 is the industry standard in automated valuation. This fourth-generation technology delivers risk-mitigating confidence scoring to you in combination with superior coverage. Multiple valuation methodologies are simultaneously leveraged, and each is weighed against a proprietary model selecting the best approach and conclusion given the attributes of the subject property and immediate data environment. Accepted by top lenders and validated by rating agencies, ValuePoint®4 assures you of accurate, objective and reliable results.
Confidence Scores: Range of 66 – 93
by Fiserv CSW
Eight of the nation's top ten banks rely on CASA® to deliver fast, statistically accurate home valuations. These leading institutions, and many others, trust CASA for applications that include appraisal substitution, collateral scoring, customer retention, appraisal QC, direct marketing, collections and loss mitigation, portfolio due diligence and more. CASA leverages a large, meticulously filtered property records database and multiple, market-specific analytic approaches to estimate current market values for individual residential properties. CASA measures home-specific price dynamics by combining several valuation methods, including hedonic analysis, Case-Shiller Indexing (repeat sales), non-linear regression techniques, home price forecasting, and unpublished innovations by CSW's research team.
Confidence Scores: Range of 60 – 100
Home Price
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Powered
by MortgageRisk Technology, Home Price Analyzer (HPA) is the
industry-standard, index-based AVM. HPA uses the repeat sales methodology to
arrive at residential property valuations. It searches indexes constructed
from over 200 million historical residential sales records on over 100
million properties. It then performs three different calculations that
include details on proximal properties and cost per square foot per
geographic area to arrive at a current market valuation.
Confidence Scores: Range of 40 – 100
PASS
by
Powered by Solimar Technology, PASS is the leading hedonic AVM for residential properties. PASS uses property characteristics combined with appraisal logic and price-time indexing to arrive at a property valuation. It applies three unique calculations with distinctively different methodologies (appraisal emulation, multi-variant statistical correlation and conformal mapping / price-time indexing) rationalized by a fourth technology, the neural controller, which creates a final value by reconciling and weighing each independent value with a sophisticated set of proprietary algorithms.
Confidence Scores: Range of 1 – 100
ValueWizard by
ValueWizard™ utilizes a combination of an enhanced Automated Valuation Model, personal interaction and integrated mapping software technology to attain higher success rates. Currently, seven of the 14 largest financial institutions nationwide use ValueWizard™ in their loan decisioning process. Banton collects public record data through the Property Preview Report and employs proprietary geo-statistical analyses to return highly accurate property valuations.
Confidence Scores: Range of 1 – 100
Additional Services
Automated Valuation Models (AVM)
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