Real estate data firm CoreLogic announced Wednesday the launch of a new automated valuation model that the company says eliminates the need for multiple AVMs.
Total Home ValueX — which builds on the company’s existing Total Home Value suite — utilizes a “singular, uniform model methodology,” according to a company spokesperson, which the company claims dramatically increases home value accuracy and hit rate for all of its AVM applications. The company also says it eliminates the need for multiple AVMs.
As a result of the COVID-19 pandemic, the appraisal industry has seen a growing need for, “dependable digital valuation tools,” Frank Martell, president and CEO of CoreLogic, the publicly traded data and analytics firm, said in a statement. That need continues to grow with no end in sight, Martell said.
“Record low mortgage rates and a home supply shortage has meant home sellers need immediate valuations to remain competitive,” Martell added. “This has created an even higher demand for efficient, accurate and reliable valuation tools.”
CoreLogic’s Total Home Value suite is one of three AVMs shown by realtor.com. The company also says on its website that it’s the AVM provider of eight of the top 10 U.S. mortgage lenders.
Typically businesses are forced to choose between various modeling methods, according to CoreLogic, to fit whatever need they have. Total Home ValueX however, is aimed at working for all business use cases without sacrificing hit rate.
The company’s model uses CoreLogic’s property records database to crunch data from more than 99.9 percent of U.S. properties, spanning more than 50 years. It also factors in data from its multiple listing service partners.
“The market continues to change, and it was time to re-imagine the traditional approach to building AVMs,” Olumide Soroye, managing director of property intelligence and risk management solutions for CoreLogic, said in a statement.
“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.”