Exploring AVMs
AVM data from Fahe
Of the 44 loans provided by Fahe, 33 had an AVM match, or 75 percent.
AVM Differences
| Average difference | Median difference | Standard deviation of difference |
|---|---|---|
| $-1,530.30 | $1,000 | $16,550.08 |
The median difference is very small, while the mean is large, reflecting the large standard deviation of the difference between AVM value and the appraisal value. 12.1% of the differences are within $1,000; 45.5% of the differences are within $5,000; and 66.7% of the differences are within $10,000.
Difference by loan amount
Of the 6 appraisals under $100,000 in the loans provided, 4 had a match. This is slightly lower then the match rate for larger loans, but the sample is too small to draw a conclusion.
For loans that did have an AVM match, the differences between the AVM and the manual appraisal were modest.
