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• Automated Appraisal Products
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• Automated Valuation Model (AVM)
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Valuation Models

Core Valuation Models

ValuTech employs three core valuation models which produce reliable independent valuation results. These methodologies are blended to provide more accurate products and their individual strengths are leveraged to complement the other valuation models and valuation processes developed by ValuTech.

Appraisal Emulation Model (AEM)

Our Appraisal Emulation Model (AEM) is revolutionary in that it is the most accurate and transparent automated valuation process on the market today. Developed over six years by an MAI, PHD appraiser and an aerospace software engineer, our valuation engine utilizes a proprietary algorithm to transform our data into highly accurate, automated valuation products and analytics by emulating time-tested appraisal processes. Appraisal emulation based valuation products and market analytics are verifiably accurate, comprehensive, transparent, reproducible and instant. These products resemble traditional appraisals products which are developed to conform to GSE appraisal guidelines producing easy to understand valuation results which can be used to fill the void not met by traditional appraisals; as appraisal review & quality control tools or as reliable and instant alternatives to BPO’s and other alternative valuation products.

  Regulatory Compliance

ValuTech’s appraisal emulation model products calculate values and present results in traditional appraisal layout which do not require expertise to understand or validated, providing ease of compliance with Interagency Appraisal and Evaluation Guidelines.

Hedonic Valuation Model

ValuTech’s hedonic regression model is an appraisal methodology that is essentially a statistically robust form of the sales comparison approach. The hedonic equation decomposes properties into their constituent characteristics such as dwelling size, number of bedrooms, lot size, age etc. and obtains estimates of the contributory value of each characteristic. When applied to a particular property, the contributory values of each of the property’s characteristics are added to derive an estimate of value (additive model).

The performance of regression analysis methods in practice depend on the data-generating process, and how it relates to the regression approach being applied. Since most AVM models rely on unrefined data not specific to the valuation of real estate their results are often based on numerous assumptions and surrogate variables and are ultimately inaccurate. ValuTech’s model excels due to its ability to leverage our highly refined, market segmented data which accounts for key attributes essential to accurate valuations.

Index Valuation Model

Leveraging our proprietary indices and statistical expertise, our index valuation models accurately values properties which have either transacted or been appraised in the past. This methodology utilizes the assumption that observed arms-length transactions or prior appraised values are accurate market representations of value. Using our proprietary index models, observed arms-length values are adjusted to account for appreciation or depreciation in values since the prior transaction date to the date of valuation. Our Indices report on residential real estate value trends at granular levels, not regional levels, which are most relevant to accurately identifying property value trends.

While simple in design, index valuation modeling eliminates potential inaccuracies caused by unique characteristics or subjective variables which are not appropriately accounted for in other models. Time is the only variable which is tied to a previous market value which already accounts for subjective characteristics of the property.