The implementation of automated valuation models among valuation firms in Peninsular Malaysia

Abstract

Automated Valuation Models (AVMs) are computer-based systems which encompass all data concerning real estate in a particular area and are capable of producing more consistent valuation reports within a short time. Traditional valuation methods employed by valuers somewhat delay the valuation process. For this reason, this research aims to identify the features AVMs in generating reasonable and relevant estimates of market value. This study focuses only on 346 firms located in Peninsular Malaysia with the purpose of discern their awareness on the existence of AVMs. Analysis of data was made based on questionnaire survey returned by the respondents. The SPSS 23.0 software was used to carry out the quantitative analysis. To consolidate the research finding, interview sessions were held with valuation firms and the qualitative analysis was conducted by using Nvivo 8.0 software. This study will evaluate the significant differences between the valuation firms whether or not they are aware of the AVMs. The finding from this study will conclude the level of implementation of AVMs in Malaysia.