The Cascade Team has deployed a class of an Automated Valuation Model (AVM) that has stood the test of time. It employs both a Hedonic modeling approach and Market Comp approach yielding several potential valuations of the home.
1) Hedonic: This tool uses a multivariate modeling approach that compares the subject property being valued to the nearby sales in the area that most closely emulate the subject property. Using its unique SpatialMatch® search engine, SpyDoor locates sales data by proximity and “comparability” to the subject property. The search radiates out from the subject property and once a sufficient number of comparables has been found, the SpyDoor AVM performs regression analysis on the data and outputs a value based on the use of the sales in closest proximity and likeness to the subject property.
2) Market Comp Approach: Devised and refined by a long standing SRA Appraiser with 25 years of experience, this valuation application emulates an appraiser’s thought process for sales comparable selection and makes adjustments for variances in the comps relative to the subject property. This methodology has been refined over many years. Once these adjustments are made, a valuation estimate is determined by the software application.
3) Blended Value: This is a very straightforward application. The formula is simply Hedonic + Market Comp Approach / 2. This allows the user to have three separate looks at a value in one model.
The Cascade Team has devised the most advanced home pricing program integrating the most complex and market accurate data anywhere. This customer facing tool blends MLS, Tax Assessed Values and SRA Appraiser tactics into one easy to use application.