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I N D U S T R Y I N S I G H T / S T E V E G A E N Z L E R
An accurate home valuation is truly the cornerstone
upon which the purchase or sale of a home is built. With
price naturally being one of the top priorities for both the
homebuyer and seller, all parties rely heavily on the accuracy
of the valuation. Historically, "getting it right" could mean
weeks—even months—before lenders have an appraiser's valuation report;
and the homebuying and selling process cannot be completed until the
report is received.
Automated Valuation Models (AVMs)
have established themselves as helping with
both accuracy and speed. AVMs are tools that
use mathematical and statistical modeling
techniques applied to large sets of data to
establish a point-in-time estimate of the price
of a piece of real property. A combination of
expanded processing power and newer and
deeper sets of data are providing faster and
better information to users. Increasingly,
artificial intelligence (AI) and machine learning
(ML) are empowering AVMs to grow more
knowledgeable, constantly improving the
process.
GETTING A MAKEOVER
While earlier conceptions of AVMs could
churn data with a mathematical formula,
without photos and modern AI they couldn't
determine critical value elements such as the
Artificial intelligence and machine
learning can be useful tools to help
improve accuracy within home
valuation models.
