An automated valuation model (AVM) is a mathematical model used to assess the value of real estate properties. It provides property valuations by analyzing various factors such as property characteristics, historical sales data, market trends and other relevant information. AVMs are often employed by banks, mortgage lenders, real estate professionals and property appraisers to quickly estimate the value of a property without the need for a traditional appraisal conducted by a human appraiser. These models can help streamline processes, save time and reduce costs in real estate transactions. However, it's important to note that AVMs may not always provide accurate valuations, especially in unique or rapidly changing markets, so they are often used as a supplement to, rather than a replacement for, traditional appraisals.