AI, Property Valuation and the Turing Test

In a previous post, I wondered how close AI has come to passing the Turing test in property valuation. Someone said the Turing test was a “high bar”. I agree.

If we ask a human expert to value a property solely by it’s basic information: the postcode, type, rooms, age and EPC rating, they would say that’s impossible.

However, with AI, strength comes from numbers. In this case, it’s the large number of transactions computers can learn from.

So, using basic information, in addition to other relevant data (about the location), I picked ALL properties sold since January 2021 (about 250K), used AccuVal to value them, and compared the valuation with the actual prices. The result has been extremely interesting:

– 30% of properties valued with over 95% accuracy
– 52% over 90% accuracy
– 68% over 85% accuracy
– 78% over 80% accuracy
– 86% over 75% accuracy

The remaining 14% valued with less than 75% accuracy are mostly outliers and invalid transactions, which I opted to keep.

Speed-wise, the computer I used (7th Gen Intel i7) was able to value 2100 properties per second.

In conclusion, I don’t know if AI has passed the Turing test, but the potential should be obvious by now.

By Jaafar

Founder of AccuVal