What Is An Automated Valuation Model (AVM)? - HomeLight

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You’ve heard it said before: purchasing real estate is one of the biggest financial decisions you will make in your life. That is more true now than ever. According to a recent report by ICE Mortgage Technology, the average American homeowner has $299,000 in equity, $193,000 of which is “tappable” and can be withdrawn.

Understanding the current value of such an impactful asset is incredibly important, whether you are considering selling your home, estimating your home’s tax burden, or calculating your net worth and investment portfolio.

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But figuring out your home’s value isn’t always easy, and guessing can cost you when so much equity is at stake. That’s where automated valuation models or AVMs come in. They use data and market trends to give you a quick estimate, so you have a better idea before making crucial real estate decisions.

In this guide, we’ll help you understand the ins and outs of AVMs, including how they are calculated and when they are (or aren’t) appropriate to use when making decisions in real estate.

To show you how to make the most of AVMs in the current real estate landscape, we spoke with Sandi Bates, a top real estate agent in American Fork, Utah, who has over two decades of experience.

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