Which term describes a computer-generated model that uses data from agents, brokers, appraisers, public records, and other sources to estimate value?

• A. Market orientation model
• B. Real estate value estimator
• C. Automated valuation model
• D. Property price predictor

Answer: (C)

This describes an automated valuation model, or AVM. An AVM is a computer-generated estimate of property value built from statistical models that pull in data from many sources—agents, brokers, appraisers, public records, recent sales, property characteristics, and market trends. The goal is to produce a quick, standardized value estimate without a full on-site appraisal. It’s commonly used by lenders and real estate platforms for initial valuations or screening, though it isn’t a substitute for a formal appraisal when a precise, defensible value is needed.

The other terms aren’t the standard industry label for this tool. A market orientation model isn’t a recognized term for automatic value estimation, and “real estate value estimator” or “property price predictor” are generic phrases that don’t capture the specific, data-driven, model-based approach that defines an AVM.