What is the status of providing raw AVM output to a lender by an appraiser?

Providing raw Automated Valuation Model (AVM) output to a lender is considered not to be an appraisal. This is because raw AVM outputs are typically automated calculations based on algorithms and data inputs that do not reflect the subjective analysis and judgement that an appraiser applies when formulating a formal appraisal report.

Since raw AVM outputs do not constitute an appraisal as defined by the Uniform Standards of Professional Appraisal Practice (USPAP), they also do not require the standard workfile documentation that follows the completion of a traditional appraisal. Workfiles are generally associated with appraisals that involve analysis, conclusion, and reasoning. In this context, since the raw AVM output stands apart from the formal appraisal process, the appraiser is not obligated to maintain a workfile.

Understanding this distinction is crucial for appraisers to ensure compliance with USPAP standards and to discern when specific requirements, such as workfile maintenance, are applicable.