What information is contained in an AVM report?
An AVM report provides a great deal of information related to the AVM’s value estimate for a property, including:
+ Address: Usually referred to as Property Address. The address used to request as the subject property for the AVM report.
+ Owner: The property owner returned with the subject property, as stated in the public records or deed.
+ County: County in which the property resides, as stated in the public records.
+ Land Use: Codified description of the type of property structure
+ Location of Property on a Street Map View: Approximate location of the subject property based on a satellite map of the property address and surrounding location.
+ Estimated Value: Estimate of the property’s market value at a specific point in time, based on the available data on the property and local market.
+ Estimated Value Range: In addition to the estimated value, the AVM also calculates the most likely highest and lowest property value. A narrow range means we have more data to help compute the AVM value estimate and the value range. A broad range indicates we have less data or there is inconstancy in the data.
+ Confidence Score: An AVM’s estimated values can be higher or lower than the actual market value due to limitations of the mathematical formula, data availability, and other factors. To reflect those variables, AVMs produce scores that tell you the AVM provider’s confidence in the estimated values.
+ Forecast Standard Deviation (FSD): FSD represents the probability that a particular AVM estimate falls
within a statistical range of actual market value for the specific property. The FSD is based on the consistency of the information available to the AVM at the time of estimation. The lower the FSD, the smaller the error in predicting actual market value and the higher the level of confidence in the value (i.e., a lower FSD means the AVM value can be expected to be closer to the actual market value). FSD calculations are a standard measure of accuracy and their calculation does not vary from AVM to AVM.
+ Comparable Sales: AVMs select and use recently sold properties located near the subject property that have similar characteristics (e.g., square footage, number of bedrooms, etc.) to estimate a property’s market value. Some AVM reports include all comparable sales used in the value calculations, while others do not.