Automated Valuation Models (AVMs) can precisely quantify how a market has changed since a property’s last sale and can analyze far more comparable sales than a human could. But they have an important limitation: They can’t assess the condition of the given property. That’s where artificial intelligence enters the picture.
In episode 14 of RiskWire: On the House, Veros’ Chief Economist Eric Fox is joined by Jon Flees, Director of Data Science and Modeling, to discuss how AI-powered property condition scoring is helping overcome one of the biggest challenges in automated valuation. Here are some key takeaways from the episode:
- While AVMs are highly effective at analyzing market data and comparable sales, accurately assessing a home’s physical condition is essential for producing reliable valuations.
- By evaluating every property with the objective methodology, AI helps reduce the subjective differences that might occur when different people assess the same home’s condition.
- Photos displaying property conditions are run through neural networks that identify patterns much like the human brain. As the models process more images, they become increasingly effective at recognizing features that influence a property’s condition and, ultimately, its value.
- VeroVISION is a product that assesses a home’s condition, and VeroValue ELITE is an AVM which uses this condition to asses a property’s value.
Curious to learn more about artificial intelligence and property condition? Watch episode 14 of RiskWire: On the House today: Webcast & Interviews – RiskWire, powered by Veros
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