Friday, September 29, 2017

How Automated Valuation Modeling (AVM) Helps Assessment Rolls and Mortgage Portfolios

(Click on the image to enlarge)

When a Market AVM is developed using the recent arms-length sales, it generates an econometric solution (bottom graph).

As the model gets further fine-tuned, with outliers removed (not shown here), the model R-squared tends to approach .90 and the COD/COV falls below 10, thus convincing technicians to apply the model on to the assessment population in order to generate the assessment roll (or on to the mortgage portfolio to have it re-priced in line with the current market).

Link to our Trend-setting AVM Book on Amazon (Kindle/Paperback)

Our Custom AVM Offerings:

1. Market AVM

2. Office AVM

3. Auto Loan AVM

4. Sales Ratio Study

No comments:

Post a Comment