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AI in Real Estate: Valuation Models That Work

Grace Kim

1/15/2025

The Problem with Traditional Valuation

Traditional comparable sales analysis is subjective and time-consuming. AI can analyze thousands of data points instantly.

AI Valuation Approaches

### 1. Automated Valuation Models (AVMs)

Machine learning models trained on millions of property transactions.

### 2. Computer Vision for Condition Assessment

AI can analyze listing photos to assess property condition and quality.

### 3. Neighborhood Analytics

NLP models analyze news, reviews, and social data to predict neighborhood trends.

Implementation Tips

  • Start with established AVMs as a baseline
  • Add local market knowledge as features
  • Validate against recent sales
  • The Future

    Expect AI to handle routine valuations while appraisers focus on complex properties.