How does the Rightmove AVM work?
The Rightmove AVM is easy to use and only requires the following information to value a property:
- Full Address
- Property Type
- Property Style
- Number of Bedrooms
If desired, additional information such as parking, year built and number of bathrooms may be supplied to further improve accuracy.
The Rightmove AVM address matches the address of the property entered with the Royal Mail PAF (Postcode Address File) data to uniquely identify that property. If the property cannot be located, or if the property is non-residential, the user is informed.
The next stage is to search our property database of Land Registry sold price data, Surveyor physical inspections and Rightmove sales particulars for any data that we have regarding the property being valued. This information is shown to the user for verification and also to permit the user to add further data.
The valuation request is then processed using 2 mathematical models:
- Indexation model - A proprietary, highly granular indexing methodology is used to estimate current market values from historic prices. This index is regularly updated and recalculated to reflect the latest market trends.
- Comparables model - A specially developed algorithm has been developed for the Rightmove AVM. This searches out radially from the subject property to locate the nearest and most relevant comparables from the full AVM property database.
Where possible a valuation and a confidence level will be generated for each model, the results will then be merged and weighted accordingly to give a final overall valuation with a confidence class for that valuation.
Along with these results the Rightmove AVM will also provide supporting evidence including comparable properties and where available photographs of the comparable properties will be shown.
The confidence level is an essential part of any AVM - without it you cannot determine how accurate the valuation is and a clear confidence level is essential to keep risk to a minimum. The Rightmove AVM produces confidence levels that directly translate to a standard deviation. Users of the Rightmove AVM can therefore determine which confidence levels they are happy to work with.
The Rightmove AVM confidence levels are clearly displayed by a letter which simply relates to the forecast standard deviation range to give an indication of the accuracy of the valuation, as shown in the table below where A is the highest level of accuracy.
|Confidence level||Standard deviation range|
|A||0 - 5%|
|B||5 - 10%|
|C||10 - 15%|
|D||15 - 20%|
|E||20 - 25%|