Automated Valuation Models

Automated Valuation Models, or AVMs, are home valuations generated from complex algorithms.  They take into account comps, market trends, home-sale histories and more, all from publicly available data found online. 

With the rise in publicly available data, AVMs have become widely popular.  If your homeowner hasn't visited an MLS and accessed an AVM ... they might be stuck living in 2003.   

Jokes aside, it is important NOT to shy away from AVMs.  Rather, use them to your advantage -- leverage AVMs to explain to homeowners why an agent is needed.  Review our tips below to tackle the inevitable conversation about Automated Valuation Models.

-   Why 3 Automated Valuation Models?
-   Talking to Homeowners about AVM's
-   AVMs:  Pros vs. Cons

-   Multiple AVMs (downloadable 1-pager)

Why 3 Automated Valuation Models?

The very first section of an PercyHome Report hosts multiple Automated Valuation Models.  On top of the raw number that each model produces, the low to high-end ranges are also listed:


Lately, you may have come across a homeowner who believes the Zillows or Redfins of the AVM-world are the be-all, end-all of pricing.  When presented with not just 1, but 3 models PLUS the high and low-end ranges for each, the homeowner begins to question the accuracy. 

For example:  A homeowner may wonder,  "Why is Zillow's lowest possible value $90k more than the HIGHEST possible value listed on HomeJunction?  Why are they so different?"

The intention of this design is all about the agent!  Simply put: multiple automated valuation models make homeowners want to ask for an agent's help!

Talking to Homeowners about AVM's

In 2023, it is inevitable that a homeowner will google their address and stumble upon Zillow or Redfin.  Don't shy away from their existence.

Instead, use multiple AVMs as an opportunity to explain that those sites are only computer models -- no one will know how to price the home better than an agent!

Pro Tip:   If your organization also has the BMA (Buyer Market Analysis) with Percy, do the following when AVM questions arise:

1.    Produce a BMA for the address. 
2.   Choose the highest AVM Range and lowest AVM Price.  
3.   Explain that there are plenty of computer models out there with vastly different ranges. 
4.   Ask if they would like a custom valuation from you.

Use the BMA to drive home the point that an agent will be needed to accurately price the home!

AVMs:  Pros vs. Cons

Part of your preparation for talking about AVMs should also be learning the Pros and Cons.  There is a reason they are popular after all! 

Having a frank discussion with Leads about the following will help establish homeowner-agent trust.



  • Clean -- helps remove human error
  • Data -- could be old or inaccurate 
  • Accessible -- can be found anywhere 
  • Property Condition -- AVMs can't see it
  • Cheap -- typically offered for free
  • Rate -- often 10-15% above/below market
  • Fast -- performed in seconds
  • Source -- AVMs may use different sources
  • Complex -- take into account a large amount of factors. 

    How?  Each unique algorithm is designed to pull large amounts of data for: comps, market trends, home-sale histories and more.

  • Limited -- to how the algorithm was constructed.

    Example:  An AVM may use ZIP codes for pricing, but your homeowner lives on the most expensive street in town.  The AVM could be lower than expected. 

Multiple AVMs 1-pager (Click here to download) 


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