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The intent of this paper is to identify uncertainty surrounding automated valuation models (AVMs) valuations and the criteria by which a valuer could judge the accuracy of an AVM estimate of value when being assisted by such AVM as a valuation tool.

European law and European Valuation Standards allow valuers to use AVMs as one tool among others in reaching an estimation of Market Value, but only insofar as the valuer is able to satisfy him/herself and the client of the relevance of the AVM report, its inputs and outputs. To enable this, it thus becomes essential that AVMs be more transparent and their accuracy verified.

This paper recommends minimum reporting requirements thereby enabling an assessment of AVM valuations. At the outset, a distinction needs to be made between two groups of AVM users: banks and valuers. Banks will require considerably more information, including details of the types of models employed and “Bulk” accuracy test results.

This paper addresses the minimum information needed by valuers in order to gauge the usefulness and accuracy of the AVMs they propose to use as one of their valuation tools.

This paper provides guidance on minimum information requirements for AVMs. Indeed, it may be that the AVM vendors' industry will recognise that providing more transparency in their reports along the lines suggested would facilitate a wider and more supportive acceptance of AVMs.

Automated valuation models have been in use at least for the last 50 years in both academia and practice, while automated valuation recently re-emerged as very important with the rise of digital infrastructure. The current state of the art, therefore, justifies the dual contributions of this paper: organising existing knowledge and providing a new framework.

This paper provides much-needed analysis and synthesis of the accumulated body of knowledge by proposing an updated classification of automated valuation approaches based on two criteria, and a taxonomy adapted to new trends. The latter requires a paradigm shift from models to automated valuation systems. Both classification and taxonomy arose after literature review.

This paper provides a framework for an explicit context under which automated valuation is carried out. To do so, authors propose a definition of automation valuation systems; contextualise the differences among theories, approaches, methods, models and systems present in automated valuation and introduce a classification of automated valuation approaches and a non-hierarchical taxonomy of automated valuation systems.

Perhaps, a systematic literature review process instead of a selective list of 100 references could additionally validate the proposed classification and taxonomy.

The new framework, underlying various dimensions of the automated valuation process, can help practitioners surpass judging models based purely on their predictive accuracy. Also, the automated valuation system is a more generic term that can better accommodate future research coming from a multitude of disciplines, more diverse business areas and enlarged variety of practical users.

This is the first paper that develops a taxonomy of automated valuation systems.

The purpose of this study is to evaluate the impact of theoretical knowledge related to financial behaviour and especially anchor effects.

The study design is based upon an experiment divided into two parts, before and after the development of the course curriculum for the course introducing behavioural finance for undergraduate real estate students.

The study concludes that the anchor effect is persistent also after introducing theoretical knowledge regarding financial behaviour and anchor effects. To conclude the results, in this study, indicates that the appraisal of properties are dependent on the individual’s cognitive capacity to mitigate anchor effects. There are epistemological assumptions underlying the belief in the individuals’ capacity to handle anchor effects that might provide biased appraisals. These assumptions need to be carefully tested and treated to increase the accuracy of property appraisals.

The study result also highlights the possibility that current literature in valuation, and learning activities, does not emphases and stimulate readers to critical thinking. This paper would, therefore, propose also other real estate education programmes to be aware of the potential lack of critical thinking among the students.

It provides an insight regarding how appraisal of properties is dependent on the individual’s cognitive capacity to mitigate anchor effects.