What is an RVM®?

In your market area, you may see Realtors Valuation Model® (RVM®) home value estimates displayed for properties on RPR in addition to or instead of AVMs.

AVMs are described in this article: http://support.narrpr.com/entries/183459-what-is-an-avm

An RVM® is an AVM produced by RPR that takes MLS data into account in producing the estimate. MLS listings can be an excellent indicator of current market supply, and MLS sales data is updated more frequently than the sales information available from local recorder offices. All of the data used to produce an RVM® is fully authorized for this purpose by each of the MLSs that licenses data to RPR.

One of the important differentiators of RVM®—in addition to MLS authorization for the use of the data—is accuracy. "Accuracy" in this context refers to the model's ability to predict sales prices within a certain margin of error a certain percentage of the time. AVMs are computer models that make many standard assumptions and are only as good as the available data. An AVM is considered to be excellent when it is able to predict a sales price to within plus or minus 10%, more than 85% percent of the time. RVM® is tested continuously by the leading independent testing companies, and has consistently outperformed every competitive model since it was introduced. While this is a result to be proud of, users should bear in mind what an RVM® is—a very high-quality AVM—and what it is not—a listing price, sales price, CMA or appraisal.

RVM® coverage is currently available in about 70% of the United States. RVM® estimates are displayed on RPR only when certain criteria are met for the number of nearby properties currently listed on the market.

 

 

An RVM® estimate consists of the valuation, a valuation range and a confidence score. For more information about estimate ranges, please visit this article: http://support.narrpr.com/entries/223087-how-is-the-avm-or-rvm-estimate-range-different-from-the-avm-or-rvm-estimate

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