Start Date
6-4-2018 4:15 PM
End Date
6-4-2018 4:45 PM
Description
This presentation will demonstrate how automatic valuation models can contain factors that can be adjusted by a site visit or even by data supplied by the owner to improve the accuracy of the automatic valuation. These factors can be hand adjusted at first but then adjusted by the models once enough data exists to do so. Due to limited resources and a relatively large land area, Iceland appraises most properties annually using automatic valuation models (AVMs). If individual owners aren't happy, they can get a second opinion based on a site visit. Appraisers can meet most demands by adjusting factors in the AVM and thereby allowing the individual property to be automatically valued in the future. This presentation will go over a few valuation formulas for residential, commercial and holiday homes to demonstrate the methodology. The initial models had hand adjusted factors based on expert opinion and construction cost factors, later these factors can be estimated by the automatic valuation models themselves. Using both AVMs and single appraisals can be a cost-effective way to provide accurate property values that can be maintained. The presentation hopes to inspire others to stop thinking about AVMs and single appraisals as mutually exclusive solutions but rather as complimentary solutions to the same problem.
Publication Date
April 2018
Recommended Citation
Finnsson, Ingi, "Getting AVMs and single appraisals to play nice" (2018). International Research Symposium. 23.
https://researchexchange.iaao.org/irs/irs18/sessions/23
Getting AVMs and single appraisals to play nice
This presentation will demonstrate how automatic valuation models can contain factors that can be adjusted by a site visit or even by data supplied by the owner to improve the accuracy of the automatic valuation. These factors can be hand adjusted at first but then adjusted by the models once enough data exists to do so. Due to limited resources and a relatively large land area, Iceland appraises most properties annually using automatic valuation models (AVMs). If individual owners aren't happy, they can get a second opinion based on a site visit. Appraisers can meet most demands by adjusting factors in the AVM and thereby allowing the individual property to be automatically valued in the future. This presentation will go over a few valuation formulas for residential, commercial and holiday homes to demonstrate the methodology. The initial models had hand adjusted factors based on expert opinion and construction cost factors, later these factors can be estimated by the automatic valuation models themselves. Using both AVMs and single appraisals can be a cost-effective way to provide accurate property values that can be maintained. The presentation hopes to inspire others to stop thinking about AVMs and single appraisals as mutually exclusive solutions but rather as complimentary solutions to the same problem.