Automated Valuation Model - AVM

Automated valuation models are used in real estate to value properties without a human appraiser having to painstakingly work out a figure by hand. The process uses computerized algorithms that take into account certain traits (like size, location, age, etc.) to arrive at a number, replacing some guy walking around your house with a clipboard. Yes, think: ZILLOW.

For the most part, the AVM process compares a property to other properties and then estimates a value based on sale prices of similar real estate. In that way, it works like the "You May Also Like" feature on streaming movie services. Though that's probably not a great endorsement: Hey Netflix, just because we liked Avengers doesn't necessarily mean we want to watch Mark Ruffalo in 13 Going on 30...