What Is an AVM in Real Estate?

💡 How Automated Valuation Models Work

AVMs combine large amounts of property data to estimate value, often without any human review. Most models rely on:

• Recent comparable sales in the same area
• Tax records and public property data
• Square footage, lot size, and property age
• Local price trends and neighborhood averages

While AVMs are fast and consistent, they can’t account for renovations, upgrades, or a home’s actual condition — which leads to valuation gaps for FSBO sellers and newly listed homes.

🌐 Where AVMs Appear Online

Many real estate websites and apps display AVM-based price estimates. The most common examples include:

• Zillow Zestimate — Zillow’s proprietary AVM that updates automatically from public and MLS data.
• Realtor.com Estimate — Uses third-party AVM data supplied by CoreLogic and other analytics firms.
• Redfin Estimate — Combines local MLS data with its own automated model.

Each platform uses different inputs, so it’s common for the same property to show three different “values.”

⚙️ The AVM Field in the MLS

Most Multiple Listing Services (MLS) include an optional AVM field that controls whether automated valuations are allowed to be displayed for an active listing.

By setting this field to “No”, your broker signals to data syndication partners — such as Zillow, Realtor.com, and Homes.com — that AVM-based price estimates should not appear on public listings.

Important: Not all MLS systems have this feature, and third-party websites are not legally required to honor it. However, using the AVM opt-out field is still the most effective way to discourage inaccurate automated valuations from showing next to your listing.

📉 Why AVMs Matter for FSBO Sellers

FSBO sellers often see low automated estimates that don’t reflect real market activity. These estimates can confuse buyers or anchor negotiations around the wrong number. Understanding AVMs helps sellers stay confident and explain to buyers that:

• AVMs are automated guesses — not appraisals
• Real market value comes from verified MLS data and comparable sales
• Pricing through Brokerless ensures accurate exposure and data consistency

📍 Brokerless Guidance

At Brokerless, we help sellers list accurately on the MLS and minimize the impact of automated pricing models. When possible, we’ll verify whether your local MLS supports the AVM opt-out field and set it to “No” before syndication to major sites.

While third-party platforms may still display their own estimates, ensuring your MLS data is complete and accurate gives buyers the most trustworthy view of your property.

Protect Your Listing From Automated Estimates

List with Brokerless and let verified MLS data speak for itself. Get national exposure, accurate listing details, and peace of mind — all for one flat fee.