Articles

Machine Learning Used to Value Real Estate

Determining the value of commercial real estate, among the largest of asset classes for investors, remains difficult, likely lending itself to the application of new machine-based valuation models that among other things take advantage of “hyper-local” information about real estate locations.

In a paper published in June, Dutch researchers argued that an “automated valuation model” outperformed traditional real estate appraisals, with an error rate of about 9 percent. The model also brings with it the ability to “produce an instant [property] value at every moment in time, at a very low cost.” the researchers said in a paper title: “Big Data in Real Estate? From Manual Appraisal to Automated Valuation.”

Source: datanami.com
Author: George Leopold

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s