What does an Automated Valuation Model (AVM) do?

An Automated Valuation Model (AVM) is a technology-driven tool designed to estimate property values by analyzing a variety of data sources. This includes information from public records, recent sale prices of comparable properties, tax assessments, and other relevant data. By using mathematical algorithms and statistical modeling, the AVM provides a quick and efficient way to calculate an estimated market value for a property without the need for an in-person appraisal.

This method of valuation is particularly valuable in settings where quick estimations are needed, such as in mortgage lending or real estate transactions. It allows lenders and agents to have a preliminary idea of a property's worth, facilitating decision-making processes in a timely manner.

In contrast, the other options focus on different aspects of real estate evaluation or management. In-person property appraisals require a physical inspection and professional expertise, evaluating property condition involves a detailed assessment of the property's state, and assessing property taxes pertains to calculating tax obligations based on property value but does not directly estimate property values like an AVM.