System and method for evaluating risk associated with property
The system and method for evaluating risk associated with a subject property include receiving first information including a first estimated value of the subject property. The system and method also include receiving second information regarding the subject property. The second information includes a second estimated value of the subject property, property location information, such as median or average property values, appreciation information, demographic information, and population information. Based upon the received first and second information, the system and method calculate a risk value indicating the risk associated with the subject property.
1. A system for evaluating risk associated with a subject property, the subject property comprising real property and the system comprising:
an input component;
a memory component;
an output component; and
a processing component communicatively connected to the input component, the memory component, and the output component, the processing component programmed to perform actions comprising:
receiving, via the input component, first information comprising a first estimated value of the subject property;
storing the first information in the memory component;
receiving, via the input component, second information comprising a second estimated value of the subject property;
storing the second information in the memory component;
calculating an automated valuation model (“AVM”) variance, a median variance and an appreciation value;
calculating a risk value based upon the first information and the second information, the AVM variance, the median variance and the appreciation value, the risk value indicating the risk associated with the subject property; and
outputting, via the output component, the risk value.
2. The system of claim 1 wherein the second estimated value comprises an automated valuation model (“AVM”) estimate.
3. The system of claim 2 wherein calculating the AVM variance comprises calculating a difference between the first estimated value and the AVM estimate, and wherein the risk value varies according to the difference.
4. The system of claim 3 wherein the second information further comprises an AVM confidence indicator, and wherein calculating the risk value accounts for the AVM confidence indicator.
5. The system of claim 4 wherein calculating the risk value comprises assigning a confidence value based upon the AVM confidence indicator, and wherein the risk value varies according to the confidence value.
6. The system of claim 1 wherein the second information further comprises data pertaining to other real property sales occurring within a predetermined period and occurring within a predetermined area, the predetermined area including the subject property, and wherein calculating the risk value accounts for said data.
7. The system of claim 6 wherein the data pertaining to the other real property sales comprises a median value of the other real property sales.
8. The system of claim 7 wherein calculating the risk value comprises calculating a difference between the median value and the first estimated value, and wherein the risk value varies according to the difference.
9. The system of claim 1 wherein the second information further comprises:
first data pertaining to appreciation of other real property during a predetermined period and within a first predetermined area, the first predetermined area including the subject property; and
second data pertaining to appreciation of other real property during the predetermined period and within a second predetermined area, the second predetermined area including the subject property,
wherein the first predetermined area is included within the second predetermined area, and
wherein calculating the risk value accounts for the first and second data.
10. The system of claim 9 wherein calculating the risk value comprises assigning a first appreciation value based upon the first data and a second appreciation value based upon the first and second data, and wherein the risk value varies according to the first and second appreciation values.
11. The system of claim 1 wherein the second information further comprises demographic data for a predetermined area, the predetermined area including the subject property, and wherein calculating the risk value accounts for the demographic data.
12. The system of claim 11 wherein calculating the risk value comprises assigning a location value based upon the demographic data, and wherein the risk value varies according to the location value.
13. The system of claim 1 wherein the second information further comprises population data for a predetermined area, the predetermined area including the subject property, and wherein calculating the risk value accounts for the population data.
14. The system of claim 13 wherein calculating the risk value comprises assigning a population value based upon the population data, and wherein the risk value varies according to the population value.