Automated Valuation
Model
An innovative evaluation model for the monitoring of guarantees
Backed by experience in both retail and corporate appraisals and in monitoring activities, the professionals at Abaco Team have developed the AVM (Automated Valuation Model) system, aimed at providing an artificial intelligence service capable of producing reliable valuations supported by statistical-mathematical modelling, combined with access to reliable sources and databases that are constantly being updated.
valuations in 2023
TECHNOLOGICAL INNOVATION AND ADVANCED STATISTICAL MODELS
The AVM model was created through an analytical procedure involving a wide range of checks and corrections, based on data harmonisation and integration processes. The result is an algorithm that uses homogeneous micro-zones for expressed values and trends in composition and extent, an algorithm that allows AVM to include the Market Value per individual property through the analysis of comparable sources of similar properties and additional significant information on the property being valued.
Abaco Team periodically validates valuations based on AVM methods. The benchmark is the actual purchase and sale prices recorded, verifying the statistical distribution of values generated by the model, and measuring deviation indices. More generally, the AVM system is validated by means of comprehensive statistical analyses, performed periodically by Abaco Team personnel.
The back testing process compares the results produced by the AVM model, at regular and homogeneous time intervals, with:
- sales prices;
- market values determined in appraisals with full protocol;
- surveys from external sources.
OUR SERVICES WITH THE AUTOMATED VALUATION MODEL
Within the vast range of services offered by Abaco Team in the AVM world, we highlight:
- valuation of the individual assets;
- automatic revaluation of real estate portfolios (also for the purposes of regulatory monitoring of banks);
- massive valuation of real estate portfolios;
- pre-assessment of portfolios;
- definition of pricing on real estate portfolios;
- clustering of real estate portfolios.
The service is enhanced by the team’s experts, who generate an output containing a market value, a minimum and maximum price range and a degree of reliability.
The AVM process is a precise scheme that offers a guaranteed result.
WHEN TO ACTIVATE THE AVM SYSTEM
You can activate the AVM system whenever you require a regulatory update of the values of a real estate portfolio, during the assessment and analysis of portfolios under disposal/acquisition and during the acquisition/management/disposal processes of distressed portfolios (NPL/UTP/etc,).
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