Models

With each AVM delivered, IntelliReal executes four unique and distinct valuation algorithms, then employs a supervisory algorithm that selects the best algorithm or blend of algorithms. So we look at each valuation four different ways. This leads to overall improved accuracy, and helps avoid large errors. Traditional automated valuation models use only one or two algorithms. Such a narrow view makes it easy to misinterpret the underlying data – delivering a valuation that misses the mark.

The four IntelliReal models are:

• The Expert System (ES) is essentially a “codified appraisal” – emulating the way an appraiser approaches property valuation by finding comps based on weighted criteria that most closely match the subject property. Leveraging the power of digital information, ES can assess and stack-rank hundreds of potential comparable properties in a split-second. The system then calculates the median of the most suitable comps, based on attributes such as distance from the subject, number of beds and baths, square footage, and sale date based on IntelliReal's market segmentation.
  
  To select, weight and adjust comps, ES uses best-practices rule groups. These rule-groups may be customized by a given client to precisely fit the client's unique business practices and requirements. This customized solution insures that any comp delivered by ES adheres to the client's existing operations.
  
  ES can deliver comps from recent sales, MLS listings, or both - as defined by the user.


• The Corrected Trend Model (CTM) starts with the subject property’s most recent sales date and price, and then trends the value forward. What is different about IntelliReal's time-shifting function is that we use our proprietary localized Intelligent House Price Index (iHPI), which is more granular and thus yields a more accurate estimate of value.


• The Corrected Assessor Model (CAM) identifies and applies the appropriate adjustment to the assessed value to equate the assessed value to the actual market value. This adjusted or corrected value is then trended forward using our granular iHPI.


• The Hedonics Model (KARL) is a multivariate piecewise non-linear regression pattern recognition engine that produces a scoring equation for each iSegment™. KARL valuations are calculated from the scoring equation using property and location attributes as variables. A KARL valuation is valid only for the date it was produced. These valuations are time-shifted to the desired date using the CTM time-shifting methodologies and regression analysis to value property attributes in each of the 45,000 iSegments™. This model weights the attributes relative to the location. For example, a fireplace may have more value in Minnesota than Florida.

To manage the four valuation models, IntelliReal leverages a supervisory algorithm called Perfect Value (PV). Based on the confidence scores and other metrics generated by each algorithm, PV selects the best model or a blend of models and delivers an integrated value and confidence score. PV monitors algorithm statistics in each of the 45,000 iSegments™ and selects the best performing model based on known performance.