CoreLogic has launched major enhancements to its Automated Valuation Model (AVM) that improves accuracy by greater than 6% signalling the company’s ongoing commitment to NZ’s real estate industry.
Used by the majority of NZ’s banks, financial institutions, insurers and real estate professionals to assess the estimated current market value of a property, the model uses comparable recent sales, rating valuations, local listings and other data. CoreLogic NZ Country Manager Stephen Mitchell says the new technology signals the company’s ongoing commitment to NZ’s real estate industry.
“I am pleased New Zealand now has access to this next generation AVM. CoreLogic has been delivering AVMs in New Zealand for 15 years, with over 480,000 reports generated by AVMs delivered annually. This roll out is all about growing and protecting our client’s businesses.”
The roll out is a central part of the company’s ongoing investment in new data and analytic technology across its New Zealand and Australian markets.
“It represents a solid 12 month development and coordination effort across the business and with key clients. In true Kiwi style, we’ve built the new engine from the ground up using the latest technologies and global modelling best practices."
“Over time, our models have gone through a number of iterations, evolving with new technology, improved data sets and the evolving needs of our customers. We’re now leveraging the best technology available globally to make faster and better use of our comprehensive data sets, now and in the future,” Mitchell says.
CoreLogic enhanced AVM significantly outperforms its predecessor model, with tests showing greater than 6% accuracy based on a nationwide sample. There is a 6% increase in the number of AVM reports showing high confidence values (based on AVM reports with an FSD <10), and usability has improved.
“Every percentage difference is a material improvement for CoreLogic clients, meaning faster decision making and reduced costs.”
“While advanced analytics are critical, human emotion is also very important. An AVM will always be more of a target than a bullseye, because the market price is always what the buyer and seller agrees to in a real estate transaction - and many factors influence that negotiation, including emotion.
“Balancing that, the AVM offers an unbiased market evaluation, referencing local market data and economic trends”. The quality, quantity, breadth and depth of that data will always affect the accuracy of any AVM, and that’s where CoreLogic has a competitive advantage,” Mitchell says.