How Property AVMs Differ in the Real Estate Industry
In real estate, property AVM (Automated Valuation Model) is used to estimate a property value typically during the underwriting process when appraisals are needed. AVMs are also used on websites to provide property estimates for potential sellers, which in turn, become valuable leads.
Whatever your reason for using AVMs, many factors go into the calculation of an AVM — and more data is not always better.
“What we exclude is important,” said Clifford A. Lipscomb, vice chair and co-managing director with AVM Analytics, a company that has developed several AVMs. “Not only do we exclude certain anomalous property types, but we also exclude the subject property itself, making our monthly accuracy tests a true out-of-sample comparison.”
In other words, clean, targeted data means more accurate property AVM calculations.
Let’s take a broader look at several AVM companies in the real estate industry.
ATTOM AVM – ATTOM Data Solutions
Robust database with 38 million transactions, tax assessment, liability information, recent home sales, market insights and more create an informed, data-driven property AVM estimate.
- Valuations for over 80 million homes across the U.S., covering 2,194 counties, containing 98 percent of the U.S. population.
- Multiple modeling approaches – statistical, metrics derived, and value blending.
- Built-in accuracy measures eliminate outliers from the start and increases model effectiveness.
- Rigorous comparable properties for accurate property value estimates.
“The new ATTOM AVM fills an important gap in the world of property valuation products that primarily reside on one of two extremes: overpriced lender-grade AVMs that are only cost-effective for a select few giant corporations; and free AVMs available to the masses but diluted due to their inherent need to be all-inclusive — not to mention they are typically not available to be delivered in bulk,” said Rob Barber, CEO with ATTOM Data Solutions. “The ATTOM AVM targets the big middle between those two extremes, providing the marketplace with a lender-grade AVM delivered via bulk data delivery platforms that are flexible and cost-effective.”
RealAVM – CoreLogic
Corelogic supplies valuations to lenders, real estate brokers, agents, and consumers. Corelogic’s RealAVM is an extensive data resource that generates a highly accurate estimated value.
- It includes nearby sales (“comparables”), property characteristics, sales trends to arrive at a close estimate of what your home is worth.
- Patent on valuation modeling and two patents pending on related protocols
- Global team of more than 50 PhDs, economists, modelers and residential appraisers creating AVMs
ClearAVM – Clear Capital AVM
Uses the freshest information and its sophisticated algorithm chooses the most accurate way to calculate a property value based on property type and geography.
- Most compliant and complete set of real estate data available
- Uses machine learning and benchmarks to adjust for current market conditions
- It leverages industry-leading listing data assets
VeroValue – Veros
Combines predictive modeling and technology with quality data and industry expertise to create valuations with unrivaled reliability.
- Online property information and local market data access
- Real-time access to metrics, security features, cost controls, track & reporting
- Specialized variations for, accuracy vs, hit rate, portfolio needs, expert-assisted valuations and fully transparent property AVM cascades
Provides the optimal combination of both accuracy and coverage. Ideal for the origination of home equity loans, retro valuations and distressed properties.
- Re-engineered by one of the most highly respected AVM developers in the world
- Provides comprehensive data for trusted values
- Less outliers than competing AVMs according to independent third-party testing
Feel free to reach out to us should you have any questions on our ATTOM AVM and how we stand out among the competition.
To get more details on ATTOM Property AVM: Click Here
Please contact us if you have questions about the underlying data referenced in this article, or would like to have access to that data in the form of custom reports, API, Bulk File or DaaS.