Jason Hartman talks with Dr Andy Krause, Principal Data Scientist at Greenfield Advisors and AVM Analytics, about the state of automated valuation models (AVMs), the potential future for AVMs, how they work, and what practicalities are slowing their development down. The two also discuss the wide range of uses AVMs have, how they're going to be changing moving forward, and how short-term rentals are impacting housing markets across the country.
Key Takeaways:
[1:16] The biggest AVM people know about is Zillow
[2:18] The science (and accuracy) behind current AVMs
[5:11] 2 things that are stopping a database from happening that would significantly improve appraisals
[9:42] How does the AVM come up with a value?
[15:17] What the AVMs do outside of simply valuing individual homes
[17:38] The future of AVMs
[20:57] The effects of the short-term rental market on the overall housing market
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