Property Valuation
What is the Automated Valuation Model (AVM) and how is it used in Nevada real estate?
AA Nevada state appraisal system replacing licensed appraisers
BA computer-generated estimate of property value using statistical models and public data — used by lenders for preliminary screening but not a replacement for licensed appraisals in most Nevada transactions✓ Correct
CAn appraisal process requiring automation of all steps
DA market analysis tool used exclusively by NRED
Explanation
AVMs (like Zillow's Zestimate, CoreLogic, and others) use algorithms and public data to estimate property values. They provide quick, low-cost estimates useful for lender portfolio monitoring and preliminary screening. However, in Nevada, licensed appraisals are still required for most mortgage originations.
Related Nevada Property Valuation Questions
- A Reno, Nevada commercial property sold for $1,800,000 with a cap rate of 6%. What is the property's annual NOI?
- In Nevada, which approach to value is most commonly used to appraise a high-occupancy apartment building?
- What is a before-and-after appraisal in Nevada condemnation (eminent domain) proceedings?
- What is the plottage (assemblage) increment in Nevada real estate appraisal?
- What is the market data approach (another name for the sales comparison approach) and why is it the most common for Nevada residential properties?
- In Nevada, 'highest and best use' in an appraisal means the use that is:
- In Nevada, what is the assessed value for property tax purposes versus market value?
- What is a regression analysis in Nevada real estate appraisal?
Practice More Nevada Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nevada Quiz →