Current AVM Testing Methodologies versus our
new Predictive Testing Methodology (PTM™)
OR
How Listing Prices Made Current AVM Testing
Obsolete and How to Fix It
AVMetrics’ PTM Testing Methodology
Overview
In this study, we have performed a comparative side-by-side analysis of both our Legacy and our new PTM™ testing systems. We used an outcomes analysis to see how the models were anchoring their valuation estimates after a listing price was published. We obtained value estimates for the same properties for use in both testing methodologies to ensure that the sampled properties were identical. This gave us a measure of the difference in the model(s) testing outcomes between the two methodologies. We believe that this new testing method establishes a new “normal” for the prediction accuracy of models uninfluenced by listing price testing outcomes.