Exposure Draft

Standard on Automated Valuation Models (AVMs)    Download

Additional recent changes have made to the standard since the process to revise, update and/or correct was undertaken and the most recent version is now available to view and submit comments. The original wording of the standard can be accessed at Technical Standards. The intent and effect of this exposure draft is to provide an updated technical standard.

Send comments by October 9, 2017, to IAAO Director of Strategic Initiatives  Larry Clark, clark@iaao.org. (posted September 9, 2017)

Scope

This standard provides guidance for public and private sector mass appraisal activities, private sector single property appraisals, and programs for the review of appraisals, real estate held in portfolio, and mortgage backed securities that depend on Automated Valuation Model (AVM) systems. The standard provides recommendations, guidelines, and best practices for the design, preparation, and interpretation of results when developing and using AVMs for the valuation of real property. AVMs can be used when sufficient economic data exists to permit development of representative and valid statistical samples. The standard’s layout follows the recognized steps used in the development and operation of an AVM. Each section includes descriptions of governing principles. This is followed by rules related to minimum and preferred requirements, as well as best practices. In addition, the appendixes present the methodologies used in developing and implementing various types of AVMs and related topics. As presented in this standard, the development of an AVM conforms to USPAP Standard 6.