Enhancements to one automated valuation system promise to improve the accuracy of estimated values while expanding the number of properties that can be valued.
The enhancements were made to the CMV-Portfolio AVM product, according to a news release that was issued on Wednesday.
Multiple sub-models utilize different methodologies and sources of data to estimate the value of a residential property.
The improved AVM was announced Wednesday by the product developer, DataQuick.
Among four models are an appraisal emulation model that uses the comparable sales approach; an inflated sales price model that multiplies the subject property’s most recent sales price by the change in DataQuick’s Neighborhood Housing Price Index since the sale; the tax assessed value model, which estimates the ratio of the assessed value of a property to the sales price of sample properties; and a hedonic model that utilizes a set of property characteristics to construct a local property value regression model using nearby recently sold properties.
“Estimates are combined using a weighted average determined by property-specific accuracy measures of each sub-model,” DataQuick said. “More accurate sub-models receive more weight when the values are combined. This approach provides more accurate and stable estimates than any of the individual sub-model estimates alone by being less susceptible to extreme over- or under-valuations.”
The San Diego-based company claims that the enhancements are expected to increase by up to 20 percent the likelihood that an AVM will fall within 10 percent of the actual sales price.
In addition, DataQuick says the number of properties that can be accurately valued is significantly increased.
Valuations can be customized based on what is most accurate for a specific market or property.
Information about CMV-Portfolio is online at www.dataquick.com/products/valuation/cmvportfolio/.
