Method and system for automated property valuation adjustment

US7788186B1 · kind B1 · utility

Assignee

• Fannie Mae · US

Inventors

• Mark Y. An · North Potomac, US
• Linghua Peng · Reston, US
• Hong Gao · Columbia, US
• Eric Rosenblatt · Derwood, US

Key dates

• Filing date: Mar 9, 2005
• Grant date: Aug 31, 2010
• Expiry date: May 13, 2028

Classification

• Technology area (CPC G): Physics
• CPC primary: G06Q50/167
• WIPO field: IT methods for management
• WIPO sector: Electrical engineering

Abstract

A method and system are provided removing systematic bias from property value predictions obtained using automated property valuation models. The systematic bias is removed by deriving monthly adjustment factors that are location-specific. The monthly adjustment factors are obtained by comparing newly obtained purchase transaction data to model-generated valuations of properties in a base valuation database. The newly obtained purchase transactions may be obtained from newly obtained data on recently completed purchase transactions and loan application data on future purchase transactions. The monthly adjustment factors are applied to the property valuations in the base valuation database to obtain adjusted property values having reduced bias and thus improved accuracy.