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What is an AVM confidence score?

Automated Valuation Models (AVMs) estimate a residential property’s market value at a specific point in time. These model estimates are subject to error, so AVM providers also produce performance metrics called confidence scores, which assess the accuracy and quantify the AVM provider’s confidence in those estimates of value.

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.

Confidence scores for AVMs indicate the probable accuracy of the AVM result and estimated value range. Higher confidence scores indicate greater probable accuracy, while lower confidence scores indicate less probable accuracy. Different AVMs calculate confidence scores differently, so a score of 67 on one AVM report may mean something different than a 67 on another AVM report.