Property Valuation
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Property valuation can be resource-intensive and time-consuming since it requires people. However, recently, automated property valuation has started to take off, and we expect this to become even more popular in the next few years. The algorithm works by harnessing key data about the property to produce an estimate of its market value.
Benefits for the company
There are several benefits to moving to an automated system for property valuation:
– Customers get a fair and accurate price based on real market data.
– Machine learning algorithms behind the software pick up on critical trends that could be missed by people.
– Customers get an instant answer.
– Real estate companies can save money and free up time for other activities.
Feasability
High
Type of expertise/ AI domain
Clustering, Regression Techniques, Random Forest – Gradient Descent
Internal data required
Property Price trends, Historic Property data, Customer Demographic Data
External data possible
Public Data, Demographics Data, Market Information, price/square meter, neighbourhood quality, etc
Variables related to traditional data sources—for instance , vacancy rates—correlated with future values. But variables related to nontraditional data, such as proximity to highly rated restaurants or changes in the number of nearby apparel stores, explained 60 percent of the changes in rent, this illustrates the power of using nontraditional data.