How does AVM (Automated Valuation Model) work?
The Automated Valuation Model is a hedonic regression model simulating urban price setting of a city , depending on the quality grades of neighbourhood setting, products and surroundings, it provides the appropriate market value of the property.
It is based on our proprietary urban price setting theory. The study decodes that every city maintains a specific price setting (float) at any given point of time and the price of a property is governed by four fundamental factors such as distance, density, surroundings and products. Differentiation in these factors provides differentiating values of property, even though situated in the same distance.
A user has to just provide the details of the property, neighbourhood setting and surrounding features to get the value of the property. The accuracy of the valuation depends on how well you have defined the property. There are three versions of defining the property attributes, such as express, essential and pro.