Automated Valuation Models: How Assessor Data Can Enhance Accuracy

Automated valuation models are advanced technological tools used across the real estate industry to create accurate estimations of property values. With the use of data-driven algorithms, automated valuation models (AVMs) can use property characteristics, sales history, and market trends found through assessor data to offer precise valuations for buyers, sellers, investors, and real estate professionals. 

This data, collected by real estate data providers like Constellation1, provides insight into property characteristics, assessed values, and sales history. With additional data sources like MLS or current market trends, AVMs can create accurate property valuations to help users make data-driven decisions. 

The foundation of real estate property valuation: accurate data 

When creating automated valuation models, companies should always prioritize accurate assessor data input. Assessor data analyzes the value of a given property based on similar sales and the general performance of the current market. Regular updates to the assessor data are crucial to maintaining the AVM's accuracy and reliability, ensuring users can use it to handle mortgages, refinancing, loans, and credit risk management. 

Accurate data will provide precise valuations that buyers, sellers, investors, real estate professionals, and larger corporations, such as financial institutions, can use to feel confident about their real estate transactions. 

Advanced technology in real estate valuation and more

Real estate valuation used to be risky, leaving buyers and sellers guessing if what they were told was true and accurate. With improved technology, real estate companies are finally able to determine how much a house is actually worth. Automated valuation models have taken the real estate industry to the next level, with less room for human error and faster analysis. This data can be optimized for reliable real estate decisions. 

Aside from automated valuation models, machine learning and big data can also track and predict useful information. Companies can continue offering advanced technology to support their AVMs and additional tools so users can access reliable insight. 

Find accurate geographic information 

Past valuation models have left many real estate professionals questioning their ability to accurately detect details like varying plots of land, views, or unique geographic features. However, with today’s advanced technology, automated valuation models can use detailed data sets to accurately differentiate these characteristics and appropriately assign a value. 

Assessor data details essential information like property addresses, parcel numbers, or zoning details to help identify a property’s location, neighborhood, and proximity to desired features like schools, transportation, etc. Inputting this data into AVMs delivers accurate and updated valuations that display the value of a property’s geographic attributes.

Gain insight into property features

Understanding what makes a property unique is essential for buyers who hope to make informed real estate decisions. Whether it's features like sustainability upgrades or individual amenities, today’s advanced real estate data can help differentiate properties. With assessor data and tools like AVMs, buyers can find properties with specific characteristics, and sellers can adjust property valuations accordingly. 

Assessor data provides a foundation for analyzing properties, providing detailed information such as square footage, lot size, the number of rooms, garages, pools, and even building materials. Proptech companies use this data to give their users an in-depth look at property features, allowing them to better assess the value and appeal of an individual property.

Use predictive analytics in real estate decisions 

Predictive analytics have changed the real estate industry. By accurately anticipating market shifts and trends, buyers and sellers can plan their next real estate move. Historical property values and sales trends of similar properties provide context for future property predictions. 

The integration of this extensive data into automated valuation models allows businesses to generate predictions of home prices, adjust costs based on recent sales, and determine pricing trends to deliver accurate and valuable valuations in a rapidly changing market. 

Discover property condition

Companies across the real estate industry can use accurate assessor data to offer an extensive view of a property’s condition. Assessor data includes details like when the property was built, its last major renovation, and its historical condition reported for tax purposes, acting as the foundation for comprehensive property insights. 

Real estate platforms can create thorough evaluations of a property's current condition by combining modern technology like artificial intelligence, machine learning, or digital imagery. Using a vast set of data from providers like Constellation1, these companies can provide useful information for their users to enhance the decision-making process and ensure confidence in real estate transactions. 

Find a reliable real estate data platform

Building accurate and reliable automated valuation models requires relevant, consistently updated data. At Constellation1, we prioritize updating our data sets so that our users feel confident about giving their clients accurate information. We enable real estate platforms to provide insight into pricing trends, market shifts, property features, and more to ensure appropriate property valuations. 

Integrating our reliable assessor data will help the real estate industry create useful tools that encourage their users to make informed real estate decisions. As your data partner, we can ensure that your AVM platform provides unparalleled value and accuracy to your users. Contact us today to learn more about our data sets and services.