Mortgage Knowledge Base
An AVM (automated valuation model) is an automated system used by lenders to estimate the value of a property before they provide a new loan or mortgage.
The system uses online data such as house price trends and local market information to generate an estimated price for the property in question. Lenders use AVMs to quickly assess the value of a property, without incurring the costs and delays of using a surveyor. An AVM would typically be used for remortgage applications or low loan to value mortgages, where determining the exact valuation is not vital.
