Real Estate · ValuationAutomated Valuation Model Development
Custom AVMs for portals, lenders, investors and PropTech teams — property value estimates with a confidence range and the comparables behind them, delivered in your platform or through an API.
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TRUSTED BY TEAMS
An automated valuation model estimates what a property is worth from data — comparable sales, property characteristics, market trends and photos — in seconds rather than days. In real estate, AVMs power instant valuations on portals, loan screening for lenders and acquisition screening for investors.
Sodio builds custom automated valuation models for real estate businesses that need more than a licensed estimate: models trained on their own data, a confidence range for every value, and the comparables that explain it.
/// IS CUSTOM RIGHT FOR YOU?
When a Licensed AVM Is Enough
Licensed valuation data is widely available. In the US, providers such as CoreLogic and HouseCanary supply AVM estimates; in the UK, Hometrack and others do the same for lenders and agents. If their coverage and accuracy suit you, license one rather than building property valuation software of your own.
License an AVM when
- Standard residential property in well-covered markets
- You only need a figure, not the reasoning
- Valuation is a feature, not your advantage
- Occasional volume
Build your own when
- Your market, property type or asset class is poorly covered
- You need the comparables and factors behind each value
- Your own transaction data is better than anyone else's
- Valuations sit at the centre of your product or lending process
///WHAT THE MODEL COVERS
Who Uses Real Estate Valuation Software, and Why
Portals and agents
Instant valuations that turn a "what is my home worth?" visit into a seller lead, and pricing support for listing appointments.
Lenders
Pre-screening applications and monitoring the value of a loan book between formal valuations, under the quality controls lending requires.
Investors and buyers at scale
Screening thousands of properties for acquisition before anyone visits one.
Asset managers
Revaluing a portfolio between formal valuations to track performance and exposure.
Commercial owners
Income-based estimates from rent rolls and market yields to support underwriting and portfolio reporting.
Instant valuations that turn a "what is my home worth?" visit into a seller lead, and pricing support for listing appointments.
Learn MorePre-screening applications and monitoring the value of a loan book between formal valuations, under the quality controls lending requires.
Learn MoreScreening thousands of properties for acquisition before anyone visits one.
Learn MoreRevaluing a portfolio between formal valuations to track performance and exposure.
Learn MoreIncome-based estimates from rent rolls and market yields to support underwriting and portfolio reporting.
Learn More/// MODULES
What an Automated Valuation Model Includes
Comparable selection
Property attributes
Model ensemble
Confidence scoring
Condition from photos
Market trend adjustment
Valuation API
Backtesting and monitoring
Explainability
Commercial income approach
/// HOW A VALUATION IS MADE
How an Automated Valuation Is Made
A value is needed
Property identified and matched to its records
Data is collected
Attributes, recent sales and market indices pulled together
Comparables are chosen
Similar sales selected and adjusted for differences
A value is calculated
Several models combined into one estimate
Confidence is measured
A range and confidence score set; unreliable cases flagged
The property sells
Estimate compared with the actual price and the model retrained
/// WHAT MAKES A VALUATION RELIABLE
What Makes a Valuation Reliable — or Not
/// ACCURACY
How Accurate Is AI Property Valuation?
One headline accuracy figure hides more than it shows. A model can be excellent for suburban houses and poor for city-centre flats in the same region. Accuracy should be measured against actual sale prices, reported by area and property type, and tracked continuously as new sales arrive.
/// COMPARE
Licensed AVM, Formal Valuation or Custom AVM Software
/// COST AND TIMELINE
What Drives the Cost and Timeline
A pilot model for one market, tested against real sale prices, typically runs within 30 days. A production model with an API and monitoring follows within 90.
The cost moves with six things: data licences, which are usually the largest ongoing cost; how many markets and property types are covered; whether commercial property is included; the accuracy the model must reach; the volume of API requests; and, for lenders, the quality control and testing their regulators require.
/// FAQ
Frequently Asked Questions
An automated valuation model, or AVM, is software that estimates what a property is worth using data rather than a site visit — comparable sales, property characteristics, market trends and, increasingly, photos. It produces an estimate in seconds, usually with a range and a confidence score that say how much to rely on it.
It depends heavily on the market and the property. AVMs are most accurate for ordinary homes in active markets with plenty of recent sales, and least accurate for unusual properties and thin markets. Accuracy is measured by how far estimates fall from actual sale prices — the median error, and the share of estimates within 5% or 10% of the sale price — and should be reported by area rather than as one headline figure.
For most mortgage lending, no. AVMs are widely used to screen, monitor and price, but a formal valuation is still required for most lending decisions. In the US, lenders that use AVMs in mortgage decisions must now apply quality control standards covering confidence, data integrity, testing and non-discrimination.
From MLS and listing data, public property and sales records, licensed data providers and — often the most valuable — your own transaction history. Each source comes with licence terms that limit how its data can be used and displayed, and the model is built within them.
Yes, and it is one of the most effective seller lead tools a portal or brokerage can have. It shows the estimate as a range, explains the comparables behind it, and passes the enquiry to an agent. Showing a range rather than a single figure is more honest and makes the follow-up conversation easier.
By designing for it. Models are built without protected characteristics, tested for patterns that act as a proxy for them, and monitored over time for differences in error between neighbourhoods. In the US, non-discrimination is part of the quality control standards lenders using AVMs must now meet.
Partly. Commercial property is valued mainly on income, so the model works from rent rolls, operating costs and market yields rather than comparable sales alone. It is useful for screening and portfolio reporting, but commercial valuations depend on lease detail and judgement, and a valuer remains essential for transactions.
/// RELATED SERVICES
Related Industries and Services
Routes where scope overlaps with real estate software.
/// GET STARTED
Start With the Sales You Already Know
Tell us which markets and property types you need to value, and what data you hold on past sales. We will assess, free, how accurate a model could be on your data — and where it would need a person instead.