From appraisal function to Automatic Valuation Method (AVM). The contribution of International Valuation Standards in modern appraisal methodologies

Abstract

In the real estate appraisal, as well as for any other scientific discipline, there is a continuous development of knowledge with related theoretical and applicative evolution that takes place primarily on the doctrinal level. The discipline has been object of regulatory and technological improvement aimed at concretizing and defining theoretical principles and methodologies. The functions of value appraisal, formulated in the different procedures that fall within the Market Oriented Approach indicated by the International Valuation Standard, have undergone a process of evolution that has favoured the introduction of Automated Valuation Methods (AVM). This evolution process represents an improvement of the conventional appraisal models that have improved the techniques of data retrieval and data base access and certify the reliability of the models to build efficient evaluation processes and universally recognized. This article aims at reviewing the methodological evolution in relation to the national market approach that the estimation discipline has recorded in recent years by virtue of the drafting and adoption of the International Valuation Standards.