Automated Valuation Modelling are no longer fit for purpose

Traditional AVMs rely heavily on tracking price change of each property. This approach lends itself well if the property has been sold recently at a fair market value (which negates the need to re-value it in the first place).

However, this approach suffers from a dreadful caveat. If a property was sold at a price lower than the fair market value, the AVM will continue to undervalue it, and vice versa.

AccuVal follows a fundamentally different approach. It doesn’t track properties at all. Instead, it tries to learn the fair market value from a mix of property and location data. As a result, it’s far more resilient than the best AVM in the market. This example is for a recently sold flat in Greater London at a fraction of the market value. Zoopla/Hometrack continues to undervalue it but AccuVal managed to get a proper valuation.

It puzzles me why most lenders in 2021 are still relying on obsolete tech when better alternatives are already available!

By Jaafar

Founder of AccuVal