Big data in real estate: from manual appraisal to automated valuation
We developed a practical application of “big data” in combination with sophisticated modeling techniques, providing an automated, machine-based valuation model for the commercial real estate sector. Automated valuation models (AVM) are clearly beating traditional appraisals — the absolute error of the automated model now stands at 9 percent, which compares favourably against the accuracy of traditional appraisals, while the model can produce an instant value at every moment in time, at a very low cost. Read our full article in the Journal of Portfolio Management.
Continue reading here.
Author: Nils Kok