A
debate entitled
"Automated Valuation Models: A Brave New World" will be held on the 19
th
of April, from 18.30 to 20.00, in Auditorium 2 (ISEG, Quelhas Building, 2
nd floor).
The debate is organised as part of the Postgraduation in Real Estate Sales Management.
Description:
Debate regarding the role and accuracy of residential AVM valuations is an ongoing topic of discussion. Given their widespread and growing use, it becomes important that Automated Valuation Models (AVMs) should be more transparent and their accuracy independently tested. Can the claims made by commercial AVM vendors be verified? If a +/- 10% margin for error is regarded as acceptable then, based on US data, on average some 65% of AVM valuations would fall within the +/- 10% bracket. However, depending on location, the distribution of valuations falling within the +/- 10% bracket ranges from 20% to 92%. Despite high average accuracy levels, individual statistically oriented/data mined valuations may be widely off the mark and need to be augmented by professional judgement. The margin for error will likely vary over different market conditions, types of property and countries. For there to be a meaningful debate, AVM vendors need to make available independent access to their models' output for testing and verification of their accuracy.
Speaker: George Matysiak
– Is Professor of Real Estate Investments in ISEG/IDEFE and Cracow University of Economics in Poland. He was previously Professor of Real Estate Investments at Henley Business School, University of Reading University of Reading and City Business School. He is co-author the best seller book "Real Estate Investment: A Capital Market Approach", published by FT Prentice Hall.
Free entrance, subject to pre-enrolment:
www.tinyurl.com/debateavm
Poster (pdf)
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