Automated valuation model (AVM)
Software that estimates a home's value from public records and recent sales. Online estimates come from AVMs and can be far off, especially for unusual or updated homes.
Also called: AVM, online home value estimate, home value estimator
Related terms
A licensed appraiser's professional opinion of what a home is worth. Lenders require one to make sure the home supports the loan amount.
An agent's estimate of a home's likely sale price based on recent nearby sales and current listings. It guides list prices and offers but is not an appraisal.
When a lender agrees to skip the appraisal, usually because automated data supports the value. It is different from a buyer waiving the appraisal contingency.
The price a home would likely sell for between a willing buyer and seller, both informed and not under pressure. Appraisals and CMAs both try to estimate it.