Appraisal evaluation and scoring system and method
View Patent ↗A system and related methods for the management and evaluation of real estate appraisals comprising, a method of determining a standardized score representative of the accuracy and quality of a real estate appraisal. Data from the appraisal is extracted and evaluated according to a plurality of compliance and risk based rules applicable to the type of appraisal. Each rule is given a particular weight, and an appraisal score may be calculating by summing each instance of a rule triggered multiplied by the weight assigned to that rule. Weights may be set by experts, or determined by statistical analysis.
1. A computer-implemented method for evaluating a real estate appraisal, comprising the steps of:
extracting data from the appraisal;
in a computer processor or microprocessor, evaluating the extracted data against a plurality of rules applicable to the type of appraisal, wherein each rule is assigned a particular weight; and
automatically calculating in a computer processor or microprocessor an appraisal score based on the evaluation, wherein the appraisal score is calculated by summing the total of each rule that is triggered multiplied by the weight assigned to that rule, according to the following formula:
Score
=
K
1
+
ⅇ
∑
j
=
1
N
w
jj
r
j
Γ
where N rules are evaluated, K is a constant, Γ is a constant, w is the weight of a rule, and r is a variable that defaults to 0 but takes on the value 1 if the rule triggers or fires.
2. The method of claim 1 , wherein the rules address whether the appraisal complies with an applicable standard.
3. The method of claim 1 , wherein the rules address the presence of certain risk factors in the appraisal.
4. The method of claim 1 , wherein one or more weights are determined by statistical analysis of appraisals.
5. The method of claim 1 , wherein one or more weights may be adjusted over time.
6. The method of claim 1 , wherein one or more weights are set or adjusted based on statistical analysis of a plurality of appraisals being subjected to the method.
7. A computer-implemented method for evaluating a real estate appraiser, comprising the steps of:
extracting data from an appraisal performed by the appraiser;
in a computer processor or microprocessor, evaluating the extracted data against a plurality of rules applicable to the type of appraisal, wherein each rule is assigned a particular weight; and
automatically calculating in a computer processor or microprocessor an appraisal score based on the evaluation, wherein the appraisal score is calculated by summing the total of each rule that is triggered multiplied by the weight assigned to that rule, according to the following formula:
Score
=
K
1
+
ⅇ
∑
j
=
1
N
w
jj
r
j
Γ
where N rules are evaluated, K is a constant, Γ is a constant, w is the weight of a rule, and r is a variable that defaults to 0 but takes on the value 1 if the rule triggers or fires.
8. The method of claim 7 , wherein the rules address whether the appraisal complies with an applicable standard.
9. A machine for evaluating a real estate appraisal, comprising:
a processor or microprocessor coupled to a memory, wherein the processor or microprocessor is programmed to evaluate a real estate appraisal by:
extracting data from the appraisal;
evaluating the extracted data against a plurality of rules applicable to the type of appraisal, wherein each rule is assigned a particular weight; and
calculating an appraisal score based on the evaluation, wherein the appraisal score is calculated by summing the total of each rule that is triggered multiplied by the weight assigned to that rule, according to the following formula:
Score
=
K
1
+
ⅇ
∑
j
=
1
N
w
jj
r
j
Γ
where N rules are evaluated, K is a constant, Γ is a constant, w is the weight of a rule, and r is a variable that defaults to 0 but takes on the value 1 if the rule triggers or fires.
10. The machine of claim 9 , wherein the rules address whether the appraisal complies with an applicable standard.
11. The machine of claim 9 , wherein the rules address the presence of certain risk factors in the appraisal.
12. The machine of claim 9 , wherein one or more weights may be adjusted over time.
13. The machine of claim 9 , wherein one or more weights are set or adjusted based on statistical analysis of a plurality of appraisals being subjected to the method.