Segmentation

Building accurate models and pure data analytics starts with intelligent market segmentation. To achieve the highest level of accuracy, we seek to be as localized as possible. Localizing to the zip code level is simply not smart enough.

Zip codes are designed for efficient mail delivery, which is largely unrelated to house price behavior or market risk. So, it is not surprising that neighborhoods within the same zip code can have widely varying price movements and risk elements depending on the specific neighborhood.

IntelliReal utilizes a patent-pending segmentation process to define intelligent segments (iSegments™) that are designed specifically for creating valuation models and data analytics, rather than efficiently delivering the mail.  iSegments refine our valuation models and provide clients with the purest view of the US real estate market possible.

• IntelliReal clusters neighborhoods to achieve the ideal market segment; specifically a segment that is as granular as possible, with sufficient transactions to be statistically relevant. IntelliReal combines neighborhoods with the most similar property attributes and socioeconomic environments to create homogeneous combinations of like neighborhoods. This process yields approximately 45,000 unique and homogeneous iSegments.
• By building valuation models based on homogeneous market areas, IntelliReal has created the first AVM and house price index that gives users the ability to assess market conditions in dissimilar neighborhoods that reside in the same zip code. This makes both our iAVM and iHPI more accurate.
• To be compatible with certain existing models, IntelliReal offers its clients the option to use Zip plus 2 segmentation. Zip plus 2 codes typically define an area where a mail carrier can park a vehicle, then cover the area on foot. This "walkable area" is more likely to define a similar neighborhood than an entire zip code area.