Results on the AEI Housing Center’s Evaluation of AVM Providers
June 03, 2024
Summary:
We received a large sample of Automated Valuation Models (AVMs) from five data providers for the same randomly drawn properties in 34 counties from 2018 to 2023. We thank each provider for participating in our evaluation and will keep their names and relative rankings confidential.
We evaluated each AVM on five different criteria (coverage, predictiveness of a subsequent sale price, springing to the list or sale price, utility as a home price index, and bounciness) using a scale from A (best or 5) to F (worst or 1). We assigned these grades either on an absolute basis or by taking into consideration the results of other providers into account. We then averaged these scores into a combined final score for each provider. When a provider provided more than one AVM model, we used the model with the highest score. The combined scores for the five providers ranged from a B (4.1 for Provider 5) to a D+ (2.4 for Provider 2).
Table: Summary results
| Provider 1 | Provider 2 | Provider 3 | Provider 4 | Provider 5 | |
| Average score over all 5 metrics | C+ (3.2) | D+ (2.4) | B (3.9) | C+ (3.3) | B (4.1) |
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