Method and system for determining real estate market value changes

• US 20100023379A1
• Filed: 07/07/2009
• Published: 01/28/2010
• Est. Priority Date: 07/07/2008
• Status: Abandoned Application

• Current Assignee: HMVP Partners LLC
• Original Assignee: HMVP Partners LLC
• Inventors: Rappaport, Edgar, Potter, Christopher C.
• Application Number:
  US12/459,865
• Publication Number:
  US 20100023379A1
• Time in Patent Office: Days
• US Class Current: 705/10
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0205 Location or geographical consideration
• CPC Class Codes: G06Q 30/0283 Price estimation or determination
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 50/16 Real estate

Abstract

A method and system for valuing real estate property values comprises correlating sales price of benchmark properties of a predetermined size and determining the property value based on the correlation. In one aspect the benchmark properties are determined based on a preselected geographic area, which may include a postal or zip code which includes properties having sizes within a particular range of the predetermined size.

Claims

1. A method for valuing real estate property, comprising:

associating a geographic area with a property having a predetermined size metric;

correlating one or more sales prices associated with a first set of benchmark properties, each benchmark property having a size metric within a range associated with the predetermined size metric of the property and selected based on the geographic area; and

determining a first value associated with the property based on the correlation.

2. The method according to claim 1, wherein the size metric of the properties are specified for the interior floor space of a structure on the property.

3. The method according to claim 2, further comprising determining a second value later in time associated with the property by correlating one or more sales prices associated with a second set of benchmark properties.

4. The method according to claim 3, further comprising determining a payout value based on the first value and the second value.

5. The method according to claim 4, wherein determining a payout value comprises computing a ratio associated with the difference between the first value and second value.

6. The method according to claim 2, wherein correlating comprises accessing a database having a plurality of postal codes, benchmark property values and size metrics, each benchmark property value being associated with a size metric, and processing the benchmark property values and size metrics to form a first group of property values within a predetermined statistical range.

7. The method according to claim 6, wherein processing further comprises accumulating 500 or more home sales prices associated with the benchmark properties based on the size metric to form the first group of property values.

8. The method according to claim 2, wherein determining a first value comprises computing an average sale price associated with each benchmark property having a size metric within a range associated with the predetermined size metric of the property.

9. The method according to claim 2, wherein correlating comprises correlating one or more sales prices associated with 100 or more benchmark properties.

10. The method according to claim 2, wherein correlating comprises associating the geographic area with a postal code.

11. The method according to claim 10, wherein correlating comprises associating the geographic area with a zip code.

12. The method according to claim 2, wherein the sales prices are between $100,000 and $800,000.

13. The method according to claim 2, wherein the structure is a residence.

14. The method according to claim 13, wherein the residence is a house.

15. The method according to claim 1, wherein the size metric of the properties are specified in acreage.

16. The method according to claim 1, wherein the size metric of the properties are specified in meters.

22. The apparatus according to claim 7, wherein the geographic area comprises a neighborhood or a town.

25. The apparatus according to claim 4, wherein the residence size metric and benchmark property residence size metrics are specified as interior floor space of the residences.

26. The apparatus of claim 25 wherein the residence is a house.

27. The apparatus of claim 25, wherein the geographic area is selected from a group consisting of a postal code, zip code, town, city, state or province.

17. An apparatus for calculating a unique value associated with a residence, comprising:

a memory containing executable instructions; and

a processor programmed using the instructions to;

request a unique value associated with a specified residence,

transmit a specified size value associated with the specified residence,

transmit a specified geographic area associated with the specified residence, and

receive the unique value, the unique value correlating to an average property price associated with one or more sales prices of benchmark residences, each benchmark residence having a size metric within a range associated with the predetermined specified residence size metric and selected based on a geographic area associated with the specified residence.

18. The apparatus of claim 17, wherein the residence is a house.

19. The apparatus according the claim 17, wherein the residence size metric and benchmark residence size metrics are measured as interior floor space of the residences.

20. The apparatus according to claim 17, wherein the geographic area comprises a postal code.

21. The apparatus of claim 20, wherein the geographic area comprises a zip code.

23. The apparatus according to claim 17, further comprising the processor transmitting an appraised value associated with the residence.

24. An apparatus for calculating a unique value associated with a residence, comprising:

a memory containing executable instructions; and

a processor programmed using the instructions to;

receive a request for a unique value associated with a residence,

request a residence size value associated with the residence, and

transmit the unique value, the unique value correlating to an average residence price associated with one or more sales prices associated with benchmark properties, each benchmark property having a residence size metric within a range associated with the predetermined residence size metric and selected based on a geographic area associated with the residence.

28. A system for determining home values, comprising:

a server;

a database accessible by the server and having sales price data and property size data associated with a plurality of benchmark properties within a predetermined geographic area, each benchmark property being associated with at least one benchmark data set having a sales price and a property size; and

a client device having a memory containing executable instructions and a processor programmed using the instructions to;

access the server to request a first property value for a specified property;

respond to a request from the server for a property size value associated with the specified property and a geographic area metric associated with the specified property, and

receive the first property value associated with the specified property from the server, the first property value comprising an average sales price for all benchmarked marked properties having a property size within a predetermined size range and within the specified geographic area metric.

29. An index for real estate valuation, comprising a plurality of recorded real estate sale prices within a geographic area metric and a correlation of the recorded real estate prices with a predetermined size metric for the real estate within the geographic area metric, whereby the correlation provides a real estate valuation.

30. A market value mechanism for compensating home buyers for market devaluation, comprising:

compiling an index of recorded home sales prices within a predetermined geographic area metric;

correlating the recorded home sales prices with the size of a home based on a predetermined property size metric to generate a market value index; and

determining a first market value for a reference home having a predetermined size based on the sales price of a first set of recorded homes in the index within a size range of the predetermined sized.

31. The market value mechanism of claim 30, further comprising determining a second market value for the reference home based on the sales prices of a second set of recorded homes in the index within the size range of the predetermined property size metric.