Glossary entry
Automated valuation model (AVM)
An automated valuation model (AVM) estimates property value using data and statistical models, often used in lending to support decisioning and risk assessment.
Category
Lending technology
Definition
How it’s used
- Support initial risk assessment and LVR calculations
- Help determine whether a full valuation is required
- Speed up low-risk scenarios with controlled automation
Operational note
AVMs are typically one input to policy, not a universal substitute for human valuation. Evidence trails should record which valuation source was used.
Related terms
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