True or False: Automated Valuation Models (AVMs) were conceived as a way of replacing appraisers in financing transactions.

The statement is false because Automated Valuation Models (AVMs) were not specifically conceived to replace appraisers in financing transactions. AVMs are designed to provide quick and cost-effective property valuations by using algorithms to analyze data from various sources, such as public records, recent sales data, and property characteristics. Their primary purpose is to assist in the valuation process, making it more efficient and accessible.

While AVMs can supplement the work of appraisers, especially in straightforward financing situations, they do not serve as a complete replacement for the professional judgement and local market insights that licensed appraisers bring to the table. Appraisers often provide a comprehensive analysis that considers not just numerical data, but also qualitative factors, such as property condition and local market trends, which an AVM may not fully capture.