Property Valuation
What is 'Automated Valuation Model' (AVM) technology and how is it used in Pennsylvania real estate?
AA PREC-certified software program required for all Pennsylvania appraisals
BA computer algorithm using statistical models and databases to estimate property value, used for quick estimates but not a substitute for a licensed appraisal✓ Correct
CAn automated system that adjusts property tax assessments annually based on sales data
DA Pennsylvania-specific valuation system replacing the traditional comparable sales approach
Explanation
AVMs (such as Zillow's Zestimate, CoreLogic, and others) use statistical models, tax records, and sales data to generate automated value estimates. They are useful for quick portfolio reviews, preliminary estimates, and lender quality control but are NOT substitutes for licensed appraisals.
Related Pennsylvania Property Valuation Questions
- A Pennsylvania appraiser must inform the client if an assignment involves a 'hypothetical condition.' A hypothetical condition is:
- Functional obsolescence in real estate refers to:
- USPAP (Uniform Standards of Professional Appraisal Practice) requires Pennsylvania appraisers to:
- The principle of contribution in appraisal states that:
- An effective age is different from actual age in property valuation because effective age reflects:
- Which of the following best describes the principle of substitution?
- A Pennsylvania appraiser must sign a certification with their appraisal report that includes statements about:
- Which principle of value states that overimprovement of a property reduces value relative to the investment made?
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