Valuing a property is an extremely complicated process that requires both a logical and creative approach. Due to the varying intangible features of each property and its appeal to certain types of buyers, valuations require judgments and interpretations. On the other hand, analyses of previous sold properties can provide key indicators for current trends in the area which must be taken into account. With technology rapidly advancing, computer modelling has become an integral part of the science of valuation. It provides valuable data to inform decisions and help protect against potential issues that may arise from incorrect opinions or negligence. A thorough valuation is essential for both real estate professionals and private buyers alike in order to identify any areas of risk.

Valuations are incredibly important when it comes to investment in real estate since they provide critical reports, insights, and data concerning portfolio strategy and transactions. Real estate valuations have become even more important in today’s digital age where investors expect the full potential of technology to be incorporated into their evaluations. One advantage that technology brings to real estate valuations is that it enables investors to assess a far wider range of evidence than what was previously available. Furthermore, tech advancements can facilitate real estate investments by making evaluation processes more speedily and more accurate with fewer errors. Ultimately, technology has created an unprecedented opportunity for investors to make highly informed decisions regarding their real estate ventures - one which should not be overlooked.

When evaluating a property assessment, knowing the accuracy of the estimated value is invaluable. However, many AVM providers use varying scales to measure this accuracy, making direct comparison difficult. A low confidence score can be due to two main factors; the property having unusual physical features that make it harder to accurately estimate value, or very sparse data in its geographical area making ranges difficult to model. Confidence measures are determined by either the relevance and quality of the comparable data used to arrive at an output figure or through forecasted standard deviation relative to true values, usually obtained through a professional valuer's report or sale price. In any case, this data can prove crucial in forming accurate conclusions about a property's value.

Regulators have been quick to recognize the role that automated valuation models (AVMs) play in assessing the value of properties. In North America and Australia, professional bodies have issued policy statements, guidance and additional standards to strategize how AVMs are applied. Conversely, the approach in the United Kingdom is twofold. The Financial Conduct Authority (FCA) offers general guidelines within its Prudential Sourcebook for Banks, Building Societies and Investment Firms (BIPRU). Additionally, the Prudential Regulatory Authority (PRA) provides a separate sourcebook (BSOCS - Building Societies Sourcebook) to focus on criteria building societies should abide by when utilizing AVM assessments. Regulations insist that building societies create secure arrangements for obtaining reliable security values.