What is an automated valuation model?
An automated valuation model, or AVM, uses available property data and a model to produce a value indication. It can be useful for an initial view of a property or for comparing information across a group of assets. The result depends on the data, the model and the property being assessed.
An automated result should be read with its date, coverage and limitations in mind. A precise-looking number does not remove uncertainty. Before using an estimate for a decision, ask what information it includes and what it cannot establish.
What does a formal property valuation add?
A formal valuation is prepared for a defined property interest, purpose, date and intended recipient. The agreed scope determines the document review, evidence, inspection requirements and reporting work. Professional judgement is applied to the available information rather than treating a model output as the whole answer.
The report should be read as a whole, including its scope, assumptions and limitations. A formal report is still specific to its instruction; its existence does not guarantee acceptance by a particular bank, authority or other recipient.
AVR and AVM have different roles at Century 99
Century 99’s AVR supports valuation case management, including instructions, report preparation and delivery. AVM supports automated property indications. One supports the workflow around an instruction; the other supports an initial assessment using property data.
These references explain the tools used within the practice. For a new enquiry or a question about an existing instruction, contact the Century 99 team with your property details and purpose. The team can clarify the appropriate next step.
When does an automated indication need closer review?
A model may have limited information about a particular property. A unit with a materially different layout, a property undergoing works or an asset with unusual lease arrangements may need closer consideration. The same applies where there are few relevant transactions or uncertainty about the underlying data.
A recent renovation, restricted access or a difference in floor-area information can raise questions that an automated figure alone does not resolve. Explain these features when asking a valuer about the appropriate scope.
- Is the address, unit and property type correctly identified?
- Which date does the indication refer to?
- Are the area, tenure and other key inputs current?
- Does the information reflect relevant tenancy or physical characteristics?
- Will the intended recipient accept this type of assessment?
Can an automated estimate be used for a mortgage?
Do not assume that an online estimate meets a lender’s requirements. Ask the lender which assessment it needs, who must arrange it and whether it requires a specific instruction or appointed valuer. The lender’s acceptance process is separate from the availability of an estimate.
If you already have a bank instruction, provide its reference and requirements when contacting the valuation team. If you are still planning a purchase or refinancing, first establish the lender’s process so that you avoid ordering unsuitable work.
What should you send when asking for advice?
Start with the property address, property type, intended use of the figure, recipient and target date. Explain whether you want an initial indication, a formal report or help understanding an existing instruction. Mention unusual features or incomplete information.
For business and portfolio enquiries, include the number of properties and the broad asset types. Century 99 can discuss the requirements and confirm whether the proposed instruction is within scope. Fees, access, reporting and delivery arrangements are agreed for the particular case.
This guide provides general information. The scope and requirements of a valuation depend on the individual instruction.