We will work to do a more in-depth valuation to determine the best list price for your home, below is an explanation of the AVM formula that was used to determine the estimated value.
What is an AVM?
This property’s valuation is generated by a formula called an Automated Valuation Model (AVM), which incorporates sales history, comparable real estate data, proprietary appraisal information and economic data to arrive at an estimated value. AVM estimates can be used as a baseline when comparing properties. A valuation produced by an AVM is not an appraisal.
The AVM Confidence Score , shown on the Property Details page, are values between zero and five stars that indicate the level to which each of the multiple models “agrees” with the other estimated values for a given property.
High confidence scores indicate that the different valuation models yield similar estimates for the property. In other words, a property is more likely to sell at a price close to the estimated value when its AVM confidence score is high. A five-star confidence score means that you can expect a property to sell at a price within 10 percent of the property’s estimated value.
Low confidence scores mean that different estimate models yield more widely ranging estimates for a property. There are several reasons why confidence scores can be low for a property’s estimated value. AVM estimates are largely driven by available information about the property and comparable recent sales. Valuation models can have difficulty producing accurate estimates in areas where key property characteristics such as living area, number of bedrooms or number of baths are missing from public records. The same is true in areas with few recent nearby sales and for unique properties.