You asked, and we delivered! Realist Public Records now has an Estimated Value section available on property reports. This section will include RealAVM™, RealAVM™ Range, Confidence Score, and Forecast Standard Deviation.
RealAVM estimates a residential property’s market value at a specific point in time. These model estimates are subject to error, so AVM providers also produce performance metrics called confidence and forecast standard deviation scores, which assess the accuracy and quantifies the AVM provider’s confidence in these estimates of value. Key Performance Metrics.
- RealAVM Value – RealAVM employs multiple valuation methodologies recursively for each valuation. RealAVM utilizes property comparables, MLS listing information, home price indexes and various statistical methods in a neural-network environment to reach the final value for a property. There is a dedicated team that continuously tunes and maintains the model for maximum performance.
- RealAVM Confidence Score – RealAVM’s confidence score is a measure of the extent to which sales data, property information and comparable sales support the property valuation analysis process. The confidence score range is 50-100. Clear and consistent quality and quantity of data drive higher confidence scores while lower confidence scores indicate diversity in the data, lower quantity of data, and/or limited similarity of the subject property to comparable sales.
- RealAVM FSD Score – The Forecast Standard Deviation (FSD) denotes confidence in an AVM estimate and uses a consistent scale and meaning to generate a standardized confidence metric. The FSD score is a statistic that measures the likely range or dispersion an AVM estimate will fall within, based on the consistency of the information available to the AVM at the time of estimation. If you think of an archery target with the AVM estimate as the bull’s eye, the FSD score tells you into which ring around the bull’s eye the actual value of a property is likely to fall, as shown in Figure 1. The lower FSD score the better. Using the target analogy, a low FSD score indicates that the AVM estimate is more accurate and the actual value lands closer to the bull’s eye.
The new section will be available by simply adding it in “Customize View.” On any property report, click on the “Customize View” button in the upper right corner and checkmark the sections you would like to display, click “Apply” and you are done! It’s that simple!