What is an automated valuation model (AVM) and how does it work?

An automated valuation model is a statistical model used to estimate a property's value and rental income without needing a physical appraisal. 

Upon request, the model provides a market property value and a market rental income figure within seconds, using property-related information provided by Landbay and market conditions.  

Landbay has a set of confidence score thresholds and minimum requirements that the figures must pass. The automated property valuation will fail if the results do not meet the thresholds. 

This differs from a physical valuation, where a valuer enters the property, assesses it and produces a report, which is sent to our Underwriting team.