In this post, we explore the top 5 property AVMs (also known as an Automated Valuation Model). An AVM analyses public records to estimate a property value for appraisals in the underwriting process, as well as offer estimates of a property for prospective sellers. AVMs boast several advantages over traditional property valuation methods, including improving cost-efficiencies and saving time. But which AVMs come out on top? In this post, we explore the best property AVM providers on the market.
ATTOM AVM – ATTOM Data Solutions
At ATTOM, our ethos is offering lender grade property valuations at cost-efficient rates. Our property AVM was originally designed to fill the gap in the market: most AVMs currently available either offer lender-grade AVMs that are only affordable for large corporations or AVMs targeted towards consumers.
Our AVM covers 80 million across all 50 states – covering 99% of the US population. Our AVM aggregates local residential property sales, market information, tax assessor data, and liability information to provide you with a highly targeted estimate.
Based on Automated Valuation Model Analytics, our property AVM utilizes multiple modelling approaches and automatically eliminate outliers for highly accurate results. To ensure confidence and transparency, we provide each property with a unique confidence score that represents the precision of the AVM estimate and assesses the deviation between the range of values and the point value:
Screenshot: ATTOM’s Confidence Score
In addition, our property valuation data can also be delivered with other data sets and as a bulk file, custom list, or AVM API. As such, the ATTOM AVM data solution is highly flexible, can be tailored to your individual needs and is one of the best real estate AVMs in the industry.
Zillow’s Zestimate is designed with consumers in mind. The platform aggregates a number of data points for 97.5 million American homes. Zillow calculates each home estimate by assessing a number of sources, including property characteristics – such as the number of rooms in a property, construction materials, or square footage; and distinctive property features – like a pool. As well as off-market and on-market data.
Additionally, since 2019 Zillow have utilized machine learning to help them assess external factors that impact the value of property into their algorithm in a bid to improve its accuracy, such as average commute times or the price of rents in an area.
However, some reports have documented that some consumers have run into issues with the Zillow platform – relying on its estimates to value property’s in home purchases and sales. Zillow representatives assert that consumers should only use Zillow Zestimate results as a starting point estimate of the value of a home – advising AVM users to also seek the advice of an experienced real estate professional.
Redfin Estimate is another AVM commonly used by consumers to assess the value of a home. Redfin includes both on the market and off the market American homes on his site – amassing to an impressive 74.4 million properties. Redfin’s error rate for listed properties is 1.69% compared to an error rate of 6.66% for off-market homes on their database.
Redfin uses data from multiple listing services to calculate the value of a property based on similar properties sold in the same area, the platform is updated daily with data on on-market properties and weekly for off-market homes in order to ensure the most accurate estimates.
A nice touch to the Redfin platform? Redfin offer to set house price hunters up with a Redfin Agent who can provide them with personally tailored advice on the value of a property based on its unique characteristics.
CoreLogic covers 99% of U.S. properties, to mortgage lenders, agents and homeowners alike. Their AVM includes property information, an estimate of a property’s value, and sales history and comps. Using the CoreLogic Store, you can search from properties using a property address or APN to find its estimated value and other relevant information. In addition, CoreLogic provides property data both on individual properties as well as in bulk.
HouseCanary is a B2B AVM provider typically used by residential real estate investors, brokerages, real estate agents for building property portfolio, undertaking property valuation and due diligence, and monitoring trends in the real estate market.
The platform uses property data spanning 40 years to provide current property value estimations and predictions for how the value of a particular property may change. HouseCanary’s analytics platform provides data on more than 100 million US homes.
Beyond offering data on individual properties at the granular level, such as historic price growth, HouseCanary also offer detailed information on the wider property market – including average house and rent price and local demographics.
Finding the Right AVM for You
There are a range of popular AVMs on the market, some focusing their efforts more on the consumer market while others tailor their platforms to the needs of the B2B sector. While some AVMs target consumers, other AVMs are lender grade, additionally AVMs typically come in a range of price points and deliveries – with few consumer-centric service providers offering bulk delivery.
Want to find out more about the analytic process behind ATTOM’s AVM? You can download our detailed white paper here.