What is required when an appraiser modifies AVM output?

When an appraiser modifies Automated Valuation Model (AVM) output, it is considered a separate appraisal assignment due to the nature of the modifications being made. AVMs typically rely on algorithms and historical data to generate value estimates. When an appraiser intervenes and alters the output, they are essentially creating a new valuation conclusion based on their judgment, expertise, or additional data that was not considered by the AVM.

This change shifts the process from a purely automated outcome to one that incorporates professional insight, thus warranting the treatment of this modified outcome as a separate assignment. It is essential for the appraiser to acknowledge that they are not simply endorsing the original AVM value but are interpreting it based on their own analysis. This distinction is important for ensuring clarity, accountability, and adherence to professional standards in appraisal practice.

While reporting modifications, agency disclosure, and the integrity of the original AVM output are critical considerations in the appraisal process, the aspect of treating the modified output as a separate assignment is paramount in ensuring that all parties involved understand the implications of the alterations made.