In this article:
- What is an Automated Valuation Model (AVM)?
- AVMs vs. Real Estate Professionals
- 3 Tips to Make a More Accurate Estimate of Your Home's Value
While I’ve found that online algorithms, known as Automated Valuation Models (AVMs), have undervalued the home I own, many have found the complete opposite: These AVMs yield higher home values than a real estate agent provides upon an appraisal for a possible sale.
Now, if a computer tells you that your home should be priced at $250,000, but your real estate agent tells you that there’s simply no way that it could sell above $225,000 based on market comparables in the neighborhood, who are you most likely to listen to? It’s oh so tempting to go with the computer’s opinion.
After all, aren’t computers objective? How could their calculations possibly be wrong?