AVM vs. home appraisal
An automated valuation model (AVM) is a computer-generated value estimate. A residential appraisal is a regulated, defensible opinion of value produced by a designated appraiser. Here's when each one is appropriate.
AVMFormal appraisal
Inspection
Adjusts for condition & upgrades
Signed by a designated appraiser
Accepted for mortgage underwriting (A-lenders)Limited
Accepted for CRA / probate / family court
Acceptable for low-stakes screening
CostFree to ~$50Several hundred to several thousand
TurnaroundSecondsDays to weeks
Bottom line
Use the right tool for the job
AVMs are great for screening — checking equity, browsing neighbourhoods, or seeing if a refinance might pencil out. For any decision that depends on a defensible value — mortgage funding, CRA, family court, estate, insurance, or litigation — you need a formal appraisal.