The last time you added a listing to the MLS, you may have reached the final Export tab and thought, “I’m almost finished!” only to wonder, “What the heck is an AVM?” AVM stands for Automated Valuation Model, which are computer-generated estimates of property value.
Automated Valuation Model
You’ve probably seen Automated Valuation Model in use before, but didn’t realize it. Familiar with StreetScout? RPR RVM? Those are types of AVMs. Many real estate companies generate their own AVMs.
*NOTE: The AVM box in Flexmls is completely separate from other third-party AVMs. Unchecking the AVM box will NOT prevent your listing from being syndicated or prevent third-party websites from providing AVMs on your property as the checkbox applies to VOW websites only.
How are AVMs Calculated?
The algorithms that generate AVM property values take into account a number of factors, including comparable sales in the same area, property location, physical characteristics of the property, historical pricing trends, property value as determined by the county assessor and others.
Do AVMs Replace Appraisals?
No, they are not appraisals. AVMs don’t consider the current condition of a property, a critical factor in determining the market value of a property, and other factors. The best way to determine the true market value of a property is to enlist the services of a professional licensed appraiser.