System and method for valuing real property

• US 20030191723A1
• Filed: 03/28/2002
• Published: 10/09/2003
• Est. Priority Date: 03/28/2002
• Status: Abandoned Application

• Current Assignee: Land America Financial Group, Inc.
• Original Assignee: Land America Financial Group, Inc.
• Inventors: Smith, William Glen, Young, Mani, Foretich, James Christopher, Eisworth, Elizabeth Arnold
• Application Number:
  US10/107,267
• Publication Number:
  US 20030191723A1
• Time in Patent Office: Days
• US Class Current: 705/400
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0283 Price estimation or determination

Abstract

A system is provided such that automated real property valuation may be achieved accurately, rapidly, objectively and consistently. The application accepts information associated with a subject property, such as the street address, and then locates that property in an associated database. Following that, the application computes a valuation for the subject property based upon comparable properties, prior sales history and other factors and data inputs. The system of the present invention accesses databases as necessary for comparable data and automatically and systematically determines the most appropriate comparables to use in arriving at a valuation. Additionally, the system may be customized by various users such that the valuation process may be undertaken in connection with pre-determined criteria such as the number of comparables to use, the maximum acceptable adjustment and other user defined criteria.

Claims

1. A method for determining a valuation for a subject real property comprising the steps of:

receiving information descriptive of the subject real property;

accessing additional information descriptive of the subject property from at least one subject property database and populating a subject property record based thereupon;

identifying at least one comparable property based upon similarity of data in at least one field of the subject property record with data in a corresponding field in a comparable property record associated with said at least one comparable property;

calculating a valuation for said subject real property based upon a value assigned to said at least one identified comparable property.

2. The method of claim 1 further including the step of determining whether a minimum amount of additional information descriptive of the subject property is available through said at least one database prior to initiating the step of identifying at least one comparable property.

3. The method of claim 2 wherein, if the said minimum amount of additional information descriptive of the subject property is not available, then processing terminates.

4. The method of claim 1 wherein the process is carried out by a server computer accessible by a client computer through the internet.

5. The method of claim 1 wherein said comparable property record is populated through access to at least one comparable property database.

6. The method of claim 5 wherein said at least one subject property database comprises at least one MTLS database.

7. The method of claim 5 wherein said at least one comparable property database comprises at least one MLS database.

8. The method of claim 5 wherein said at least one comparable property database comprises at least one MLS database and said at least one subject property database comprises at least one MLS database.

9. The method of claim 5 wherein said at least one comparable property database comprises a public record database.

10. The method of claim 5 wherein said at least one subject property database comprises a public record database.

11. The method of claim 5 wherein said at least one subject property database comprises at least one MLS database and at least one public record database and said at least one comparable property database comprises at least one MLS database and at least one public record database.

12. The method of claim 1 wherein a user is prompted for and must enter a street address and a zip code, or alternatively, a street address, a city and a state prior to initiation of the receiving of information descriptive of the subject property step.

13. The method of claim 1 wherein the step of identifying at least one comparable property further comprises the steps of:

for each potential comparable property, determining if the potential comparable property meets a minimum similarity test with respect to a least one predetermined field;

if said potential comparable property does meet said minimum similarity test with respect to said at least one predetermined field, including said potential comparable in a pool of potential comparables to be ranked; and

ranking said potential comparable properties in said pool of potential comparables to be ranked.

14. The method of claim 13 wherein said step of ranking said comparable properties further includes the steps of

determining a ranking for each of a plurality of fields for each said potential comparable properties;

according a weight to each of said fields;

ranking said potential comparable properties against one another based upon said weight accorded to each of said fields and the rankings determined for each of said plurality of fields with respect to each said potential comparable property.

15. The method of claim 1 further comprising the step of performing adjustments to an initial comparable valuation based upon data contained within at least one of the fields of said comparable property record as said data compares to the associated data within the said subject property record.

16. The method of claim 15 wherein said step of calculating a valuation for said subject property further comprises determining a net adjustment for each of said comparables, calculating an adjusted sales price for each comparable property, weighting each of said comparables and then calculating a final valuation for said subject property based thereupon.

17. The method claim 1 where final valuation data is retained in a knowledge base and is used in connection with later valuations.

18. The method of claim 17 wherein intermediate calculations are retained in a knowledge base and are used in connection with later valuations.

19. A real property valuation system comprising;

a subject property information prompting component for receiving information descriptive of the subject real property;

a subject property look up component for accessing additional information descriptive of the subject property from at least one subject property database and populating a subject property record based thereupon;

a comparable identification component for identifying at least one comparable property based upon similarity of data in at least one field of the subject property record with data in a corresponding field in a comparable property record associated with said at least one comparable property; and

a valuation calculation component for calculating a valuation for said subject real property based upon a value assigned to said at least one identified comparable property.

20. The real property valuation system of claim 19 wherein each of said components comprise a software process running on a server computer and accessible by a client computer.