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How Accurate are AVMs?

There are recommended tests for evaluating residential AVMs, these include:

  • Hit Rate: The number of times the AVM will return a result for a given population sample
  • Comparison of AVM Output to the Actual Sale Price: The comparison of the AVM return for the subject property and the recent sale transaction of the subject property
  • AVM Percentage Error: The difference between the AVM return for a sold property and sale price, expressed as a percentage of the sale price
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