Automated Valuation Models (AVMs)

Instant home values can be a helpful starting point, but they should not be the final word on what your home is actually worth.

What Is an Automated Valuation Model?

An Automated Valuation Model, commonly called an AVM, is a computer-generated estimate of a property's value. AVMs use public records, recent sales, tax data, property characteristics, market trends, and other available information to estimate what a home may be worth.

AVMs are used by many real estate websites, mortgage companies, banks, and online home valuation tools. They are quick and convenient, but they are only as accurate as the information available to the computer model.

The Problem With Online Home Values

A computer cannot walk through your home, see your upgrades, judge the condition, evaluate the view, understand your neighborhood, or account for buyer demand in real time.

An AVM may not fully consider important factors such as:

• Recent renovations or remodeling
• Roof age, impact windows, HVAC, and major systems
• Interior condition and quality of finishes
• Lake views, privacy, lot location, and community position
• HOA fees, amenities, restrictions, and buyer demand
• Competing homes currently for sale
• Buyer motivation, seller motivation, and negotiation strategy

Why Free Home Value Websites Exist

Many large real estate websites offer free home value estimates to encourage homeowners to provide their contact information. That information may then be sold or distributed as a lead to real estate and mortgage professionals.

The estimate may be useful, but the website's goal is often lead generation. That is why it is important to understand the difference between a quick online estimate and a thoughtful pricing opinion from a local real estate professional.

Common Seller Resources

• Get Your Instant Home Value
• Preparing Your Home for Sale
• Professional Photography Examples
• Professional Feature Sheet Example
• Contract to Closing
• Real Estate Resource Center

Want a More Accurate Opinion?

Michael and Robyn Porcelli combine comparable sales, active competition, market trends, neighborhood knowledge, property condition, upgrades, and buyer demand to help you better understand your home's true market value.

Michael & Robyn Porcelli
RE/MAX Prestige
Serving West Boynton Beach, West Lake Worth, and Palm Beach County