Real estate in Europe is one of the most relevant asset classes, valued at € 2.7 trillion. The residential mortgage market is one of the biggest financial sectors in the European economy, estimated at € 1.2 trillion and growing.
These numbers make valuation fundamental for consumers, investors, banks and real estate professionals. Regulatory pressure obliges lenders to assess their portfolios regularly.
Some sort of automation is necessary in all of this! Which is where Automated Valuation Models (AVM) come in.
An AVM is a system for the valuation of real estate that provides a value of a specified property at a specified date, using mathematical modelling techniques in an automated manner, without any on-site inspection.
The European AVM Alliance (EAA) is the European not-for-profit association of leading providers of Automated Valuation Models (AVMs) for the residential property market.
The mission of the EAA rests on three pillars:
- promote AVM awareness and disseminate a greater understanding of the benefits that AVMs can deliver
- represent the interests of the AVM industry vis-a-vis the European institutions and other market influencers
- establish consistently high-quality standards for AVMs across jurisdictions and to certify compliance with these standards through the EAA AVM Label.
The European AVM Alliance, the European body representing AVM providers, introduces this explainer video. For more info go to www.europeanavmalliance.org
