Homestimate Documentation: Understanding Our AI-Powered Property Valuation Tool

What is Homestimate?

The Homestimate® is an AI-powered home valuation model that estimates the market value of a property. It takes into account various factors such as property details, location, and market trends to provide an estimated value.

How Does Homestimate Work?

Homestimate utilizes advanced machine learning algorithms to analyze a wide range of data points including property characteristics, historical sales data, market trends, and more. Based on this analysis, it generates an estimated value for a given property.

Accuracy and Limitations

While Homestimate strives to provide accurate valuations, it's important to note that it is an estimate and may not reflect the actual market value. Factors such as property condition, renovations, and unique characteristics may not be fully captured in the estimation. It's always recommended to consult with a professional appraiser or real estate agent for a more precise valuation.

Getting a Homestimate

To get a Homestimate for your property, fill out the form on the Homestimate page with relevant details such as area, total floors, rooms, and more. Once you submit the form, the Homestimate algorithm will process the data and provide you with an estimated value.

Disclaimer

Please note that the Homestimate is provided for informational purposes only and should not be used as a substitute for professional appraisals or market evaluations. The accuracy of the Homestimate may vary based on data availability and local market conditions.

Accuracy of Homestimate

The Homestimate has a median error rate of 6.59 percent. This means that, on average, the Homestimate deviates from the actual market value by approximately 6.59 percent. With a relatively low median error rate, the Homestimate provides a reliable estimation of property values.

Table 1. Accuracy Metrics

Version	Median Error ℹ️ The Median Error rate is a metric that measures the typical deviation between estimated and actual values. It provides insight into the accuracy of the estimation process.	Percentage within 5 percent of Market Price ℹ️ This is the percentage of transactions for which the Homestimate was within 5 percent of the Market Price.	Percentage within 10 percent of Market Price ℹ️ This is the percentage of transactions for which the Homestimate was within 10 percent of the Market Price.	Percentage within 20 percent of Market Price ℹ️ This is the percentage of transactions for which the Homestimate was within 20 percent of the Market Price.
1.0	6.59%	41.29%	63.49%	84.09%

Evolution of Homestimate Model

In the dynamic realm of real estate, the Homestimate model undergoes continuous refinement to ensure accurate estimations. As it assesses the market value, sensitive to the ever-changing real estate landscape, regular updates are imperative. We commit to this upkeep, unveiling a new version with each update, unveiling not just changes but also showcasing the outcomes and intricacies of the model.

Table 2. Index

Version	Built date	Data volume
1.0	27 June 2023	15,000