An AVM Back Testing environment is different from an AVM test environment. For an AVM test, by definition the benchmark value is based upon a recent verified sales price, but for AVM Back Testing the benchmark value is based upon an available (reconciled) appraised value that is (usually) not supported by a recent sale. The AVM(s) predict the appraised value and standard test metrics are applied. This outcomes analysis is compared to how the AVMs are employed in a production environment in lieu of the traditional valuation process.
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