For lower-confidence AVM results, we suggest in-platform quality control by AAAVM or SAAVM.
There are a number of reasons an AVM might contain an unexpected valuation, including:
► Though the AVM can run on an address only, it will take into account additional enrichment (e.g. square meterage, nr of bedrooms) supplied by the client. If this data is erroneous, output will be inaccurate.
► The AVM may have been run on an erroneous subject property address due to errors in addresses supplied, or in the case of incomplete addresses, to Geowox encoding errors.
► AVMs rely on public data, so inaccuracy of public record data can generate incorrect AVM valuations.
Also, major property renovations, modifications, or upgrades such as extensions may not be included in the public records and, therefore, will not be reflected in the AVM value estimate.
► AVMs cannot determine the physical condition or relative marketability of a property. AVMs tend to work best where there is an abundance of current data, properties in a given area are similar, and a property’s condition and marketability are typical for the area. If your property’s AVM value doesn’t appear right, it may be due to a lack of current local data, heterogeneity of neighbourhood properties, or the property differing significantly from the neighbourhood average.