A Valuation Report is also known as an AVM. AVM stands for Automated Valuation Model and is a process to establish a market value of a property through “scientific” measures, versus a human’s inclination. To determine a property’s current value, an AVM uses computer decision logic based on sales trends, title records, neighbored analysis, market metrics, tax assessment databases and more. These reports assume a subject property is in average condition for the neighborhood with no substantial improvements or deficiencies when compared to any other typical home in the neighborhood. Once the searching and sorting for data is complete, the analysis is conducted and the AVM affixes a value estimate to the property.
It is important to note that an AVM is just once piece of the puzzle when pricing your home. You need to take into consideration the condition of your home, including any major or minor upgrades and renovations.