Clear Capital, a provider of technology to mortgage lenders, last week unveiled a new automated valuation model (AVM) that draws upon machine learning to calculate what is says are unusually accurate home value estimates.
ClearAVM is designed to help lenders with tasks including pre-valuation, portfolio valuation, home equity situations and underwriting.
According to Clear Capital, part of the valuation technology’s “lender-grade” accuracy comes from its use of “machine learning.” This tech refers to a self-updating statistical model that finds connections between variables (such as property characteristics) and outcomes (such as transaction prices) to constantly improve predictive algorithms.
“We designed ClearAVM to ‘think’ like a valuation professional, which means on a case-by-case basis the model can automatically look outside of a typical search radius and train itself to consider variables that may add the most value, like a property’s view,” said Clear Capital CEO Duane Andrews in a statement.
“An older approach to building AVMs would have required special consideration and manually-coded rules for tricky scenarios — ClearAVM does the work automatically.”
Clear Capital also provides products including technology-powered appraisal and property report services, the second of which is based on multiple listing service data and assistance from a network of brokers. Its new AVM “rounds out its suite of services,” particularly “when combined with its other analytics solutions and network of appraisers and real estate professionals who offer in-the-field valuation and inspection expertise,” the company said in a press release.
“ClearAVM is benchmarked against refinance appraisals, where the answers aren’t just out there to be found,” Andrews added. “And at only four months old, those third-party tests are showing that ClearAVM is outperforming most other major AVMs — many of which have been around for decades.”
Clear Capital is offering a free trial of ClearAVM to new customers.