AVMs provide fast and easy property valuations, benefitting lenders and investors by reducing the costs and high turnaround times associated with traditional property valuations.

AVMs also provide consistency and objectivity in the property valuation process. While banking institutions cannot replace manual intervention with AVMs in all real estate-related financial transactions, such as mortgage origination, many lenders and investors use AVMs in other due diligence processes.

How and when lenders use AVMs is specific to each financial institution.

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