Accuracy of the AVM

The most commonly used benchmark in measuring the performance of the AVM is Surveyor's valuations.

For example, a sample property can be valued using both the Rightmove AVM and a Surveyor:

Picture of a home
  • 3 Badger Lane, Durham, DH1 3LN
  • Type: House
  • Style: Detached
  • Bedrooms: 3
 
  • Surveyor valuation: £340,000
  • AVM valuation: £324,500

The difference between these two valuations can be referred to as the "error".

(AVM - Surveyor valuation) = - £15,500 = - 4.6% "error"
Surveyor valuation   £340,000    

If this measure is replicated across a batch file, then a spread of "errors" can be plotted.

AVM Accuracy

However, the valuation cannot be viewed in isolation. Each valuation provided by the Rightmove AVM has an associated confidence indicator, which translates directly to the forecast standard deviation:

Confidence levelStandard deviation range
A0 - 5%
B5 - 10%
C10 - 15%
D15 - 20%
E20 - 25%
Uv>25%

Thus, where Rightmove claim the valuation to have a confidence of "C", the true value can be predicted within confidence intervals, having a standard deviation of between 10% and 15%.

 

The Rightmove AVM has also been assessed by leading Ratings Agencies for the purposes of RMBS.

Standard & Poor's
Moody's
Fitch Ratings
DBRS

Key features of the Rightmove AVM

  • Simple, easy-to-use interface
  • Rightmove's established product reliability and speed
  • Full audit capability
  • Detailed, statistical indicators of confidence levels for all valuations
  • Photographs of comparable properties
  • Individual property as well as batch valuation capability
  • UK coverage
  • Reinstatement values
  • Rental AVM available

Rightmove for professionals