Practice briefing – Automated valuation models (AVMs): their role, their advantages and their limitations
Journal of Property Investment & Finance
ISSN: 1463-578X
Article publication date: 29 September 2020
Issue publication date: 5 August 2021
Abstract
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.
Keywords
Acknowledgements
This paper forms part of a special section “Practice Briefing”.
Citation
Glumac, B. and Des Rosiers, F. (2021), "Practice briefing – Automated valuation models (AVMs): their role, their advantages and their limitations", Journal of Property Investment & Finance, Vol. 39 No. 5, pp. 481-491. https://doi.org/10.1108/JPIF-07-2020-0086
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited