Heard this a bunch at a real estate club meeting.
Thanks
Here is what I found on this. Probably more than you wanted to know. 
“AVM” is the acronym for Automated Valuation Model. An AVM is a computerized system designed to simulate the traditional appraisal process and provide residential property valuations. AVMs vary widely in accuracy, reliability and usefulness based upon numerous factors including data quality, real estate fundamentals and complexity of the underlying technology.
The term “automated valuation model” is actually descriptive of an AVM’s functionality. Automated differentiates computerized AVMs from the manual process used by human appraisers. Valuation describes the output and purpose of the system, relative to residential real estate. Model refers to the algorithms, methodologies and technologies used by the AVM to analyze data and produce a valuation estimate.
Thanks Tom!
Beware any automated valuation system.
You wouldn’t believe the problems I’ve seen these things cause people who’ve relied upon their accuracy.
Here’s what Fitch had to say of AVM’s;
Fitch Ratings, is one of the major risk-assessing firms for the global bond market.
Fitch is imposing a devaluation of the homes backing mortgages in bond pools if they’ve been performed by “automated valuation models” (AVM’s), broker price opinions, desk reviews, tax assessments, or drive-by’s.
AVM’s have proven themselves to be highly inaccurate–returning valuations which have proved to be 15-20% inaccurate…even in so called “cookie cutter” neighborhoods.
I’ve seen atypical property valuations off by more than 50%.
-Infowell