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Unmatched Accuracy, Confidence and Reliability: CoreLogic Launches New Automated Valuation Model
The new single model eliminates need for multiple AVMs and increases home valuation accuracy IRVINE, CALIF. - OCTOBER 21, 2020 -- CoreLogic, a leading global property data and analytics-driven solutions provider, today announced the launch of Total Home ValueX, a new automated valuation model (AVM) that eliminates the need for multiple AVMs. Building on the existing Total Home Value suite, the new, single model methodology dramatically increases home value accuracy and hit rate for all AVM applications. "In 2020, the appraisal industry saw an immediate need to shift from traditional in-person appraisals to consistently precise and dependable digital valuation tools — a need that continues to grow and has no end in sight," said Frank Martell, president and CEO, CoreLogic. "Record low mortgage rates and a home supply shortage has meant home sellers need immediate valuations to remain competitive. This has created an even higher demand for efficient, accurate and reliable valuation tools." Traditionally, AVMs were designed with broad applications in mind, requiring businesses to choose between various models. However, this choice creates an additional risk of leveraging the incorrect AVM, which can have long-lasting and negative impacts on business growth and hit rates. To address this industry-wide problem, Total Home ValueX utilizes a singular, uniform model methodology to render highly accurate valuations across all business use cases — without sacrificing hit rate — even on hard-to-value properties. Total Home ValueX provides current market values for the U.S. residential housing stock. The model leverages CoreLogic's industry-leading property records that capture 99.9%+ of U.S. properties and span 50+ years, as well as MLS data and newly added data sources not traditionally used in AVMs to support diverse use cases and markets spanning mortgage, real estate, ReTech, FinTech, PropTech, government, insurance and even consumers. "The market continues to change, and it was time to re-imagine the traditional approach to building AVMs," said Olumide Soroye, Managing Director, Property Intelligence & Risk Management Solutions, CoreLogic. "This ground-breaking AVM platform is powered by a rich data set that is refreshed daily, cloud computing, and machine learning techniques leading to superior AVM performance that can be validated with independent testing." About CoreLogic CoreLogic (NYSE: CLGX), the leading provider of property insights and solutions, promotes a healthy housing market and thriving communities. Through its enhanced property data solutions, services and technologies, CoreLogic enables real estate professionals, financial institutions, insurance carriers, government agencies and other housing market participants to help millions of people find, buy and protect their homes. For more information, please visit www.corelogic.com.
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Redfin Improves Accuracy of the Redfin Estimate and Expands to an Additional 11 Million Properties
Using AI to Accurately Price Homes Supports RedfinNow's Expansion Strategy SEATTLE -- Redfin, the tech-powered real estate brokerage, announced it has improved the accuracy of the Redfin Estimate and expanded coverage to five new metro areas and several additional property types, including land and multi-family properties. The Redfin Estimate is a calculation of a home's worth, built on Redfin's propriety machine learning algorithm that uses billions of data points about properties across the country. Redfin improved the accuracy of its estimate for off-market homes by 70 basis points, as the median error improved from 6.3% to 5.6%. An error rate of 5.6% means that half of all Redfin Estimates fall within 5.6% of the home's eventual sale price. For a typical $300,000 home, the updated Redfin Estimate is now $2,100 closer to the market value and will be within $16,800 of the final sale price half of the time. Among Redfin's most popular features, the Redfin Estimate gives homeowners, buyers, sellers and real estate agents insight into the value of more than 85 million homes. Homeowners can claim a home on Redfin to track its Redfin Estimate over time and edit facts about their property to further improve the accuracy. When it's time to sell, the Redfin Estimate is often the starting point in a conversation between a seller and her Redfin agent. "Everyone wants to know what their home is worth, which is why the Redfin Estimate drives so many homeowners to visit our site and start a conversation with a Redfin agent," said Redfin CTO Bridget Frey. "In real estate, every tenth of a percentage point matters and can represent hundreds or thousands of dollars in a home's value. Agents know that a smart, data-driven pricing strategy is often the difference between a home that sells quickly with multiple offers and one that sits on the market. The accuracy of the Redfin Estimate speaks to Redfin's data advantage as a brokerage that employs thousands of real estate agents across the country who work hand-in-hand with our engineers, providing uniquely human insights as we train our machine learning algorithms. With the best data, top tech talent and deep agent expertise, Redfin has the necessary ingredients to transform the real estate industry through AI and machine learning." A highly accurate estimate is also critical for RedfinNow, Redfin's instant-offer business. RedfinNow buys homes directly from homeowners for cash, fixes them up, if needed, and then quickly resells them. "The new release not only improves the accuracy of the estimate, it includes back-office tools that show the confidence of the estimate and project the future sales price, so we can better assess the risk and opportunity of buying a particular home," said Quinn Hawkins, head of RedfinNow. "With continued advancements in AI and machine learning, we can envision a future where the Redfin Estimate becomes a live offer for a subset of properties." More Accurate Redfin has improved the accuracy of the Redfin Estimate for both off-market and on-market properties. For homes actively listed for sale, the Redfin Estimate error rate improved by 5 basis points, improving from 1.62% to 1.57%. These accuracy gains for both on- and off-market properties were measured by comparing the performance of the previous algorithm to the updated algorithm between February and August 2019. The Redfin Estimate error rate is dynamic and updates daily for on-market homes and weekly for off-market homes. The most current national and local error rates are listed on the Redfin Estimate page. Redfin's engineers and data scientists improved the Redfin Estimate's accuracy by conducting hundreds of experiments, testing and retesting new models and incorporating new data. Because Redfin is a brokerage, the company has complete access to the Multiple Listing Services (MLS) used by real estate agents to describe properties in extensive detail, with each MLS tracking different attributes of a home that Redfin can use to calculate a more accurate estimate, such as whether a home is located on the water, has a view or faces a busy street. Expanded Coverage Redfin also expanded the Redfin Estimate to five new markets: Connecticut, Boise, Des Moines, Spokane and Chattanooga. Previously available for three property types: single family homes, condos/coops and townhouses; Redfin can now provide estimates for several new types of properties including land, mobile homes and multi-family buildings. For more information about the Redfin Estimate, visit: https://www.redfin.com/redfin-estimate About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 90 major metro areas across the U.S. and Canada. The company has helped customers buy or sell homes worth more than $85 billion.
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Onboard Informatics Launches Powerful New Automated Valuation Model Designed for Millennials
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