Embracing the Next-Generation AVM

White Paper • 2022

What is this paper about?

Automated valuation models (AVMs) are effective property valuation tools. But they’re kind of like magic – enter an address, and an estimated value appears. For consumers, that simplicity is perfect. But for financial institutions that use AVMs for lending decisions, quality control, or other situations that carry risk, the mechanics behind that simplicity must be well understood.

This White Paper will help readers understand more about AVMs, what makes a good AVM, and how to choose an AVM they can trust for their specific needs.



Sponsored By:

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Key Points:

  • The right AVM makes all the difference: When it comes to valuing properties in a volatile market, as we experienced in the years since the pandemic, choosing the right AVM is imperative.
  • Your AVM should be nimble: Users will want an AVM that can nimbly assess different housing markets and help better predict the success of loans on the secondary market, like with Fannie Mae or Freddie Mac.
  • Coverage is key: If an AVM doesn’t have robust property data points on home sales across the US, it doesn’t provide the degree of accuracy that the real estate market needs.
  • Humans and machines working together: Your AVM needs both human AND machine learning to perform in an uncertain housing market.
  • Test the most innovative AVM in real estate: You can try ClearAVM for free with 30 free AVMs to see how ClearAVM fits into your existing workflow.

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