What is an AVM or RVM® confidence score?

The AVM and RVM® estimates displayed on RPR are the product of multiple Automated Valuation Models, each of which uses proprietary algorithms and arrives at its own estimate. The AVM Confidence Score and the RVM Confidence Score, shown on the Property Details page, are values between zero and five stars that indicate the level to which each of the multiple models “agrees” with the other estimated values for a given property.



High confidence scores indicate that the different valuation models yield similar estimates for the property. In other words, a property is more likely to sell at a price close to the estimated value when its AVM confidence score is high. A five-star confidence score means that you can expect a property to sell at a price within 10 percent of the property's estimated value. 

Low confidence scores mean that different estimate models yield more widely ranging estimates for a property. There are several reasons why confidence scores can be low for a property's estimated value. AVM estimates are largely driven by available information about the property and comparable recent sales. Valuation models can have difficulty producing accurate estimates in areas where key property characteristics such as living area, number of bedrooms or number of baths are missing from public records. The same is true in areas with few recent nearby sales and for unique properties.

When an agent is working with a property that has a low confidence score, the agent can use personal knowledge about the property and the market to arrive at a more accurate estimated value. RPR provides tools to do this on the Comps and Refined Value tabs on the Property Details page.

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    Harlan R. Powers

    Great tool. I use it everyday!!!!!!!

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