Practice briefing – automated valuation models (AVMs): their role, their advantages and their limitations

Glumac, B. ORCID: https://orcid.org/0000-0002-8294-4827 and Des Rosiers, F. (2021) Practice briefing – automated valuation models (AVMs): their role, their advantages and their limitations. Journal of Property Investment & Finance, 39 (5). pp. 481-491. ISSN 1463-578X doi: 10.1108/JPIF-07-2020-0086

Abstract/Summary

Purpose – The current state-of-the-art recognises three traditional valuation approaches. The current division is not sufficient to explain systematically all features that drive the development and usage of automated valuation models. Design/methodology/approach – This practice briefing reviews existing valuation approaches, their pros and cons and more critical other automated valuation aspects or features; both based on a literature review. Findings – This paper discusses and lists the six critical aspects or features, besides the valuation approaches. Practical implications – This paper reveals the list of aspects or features that are important to consider when designing an automated valuation model. Originality/value – This practice briefing discusses the inclusion of a multitude of aspects when considering an automated valuation model design.