DataQuick, a company specializing in real estate analytics and decisioning platforms, has released CMV-Portfolio, an automated valuation model aimed at the portfolio risk management segment.
According to the company, each CMV-Portfolio property value is delivered with a confidence score, which indicates ‘the precise level of accuracy associated with the value,’ together with a Forecast Standard Deviation, which represents the probability that the CMV-Portfolio valuation falls within a statistical range of the actual market value, measured against a sale price.
‘How likely is it to be an accurate estimate? Is the valuation supported by recent sales? Does the score demonstrate confidence? Is the property an outlier in its community, skewing automated results? All of these questions can cast doubt on a valuation, and risk managers need insight into these factors to ensure the best business decision,’ says John Walsh, president of DataQuick.
The company notes that CMV-Portfolio calculates valuations by basing value estimates on input from four sub models. Users can specify the desired accuracy level based on the requirements of individual portfolios, giving risk managers control of accuracy and hit rate.