Veros Real Estate Solutions announced a series of gradual and controlled updates to its VeroVALUE AVM, which have produced significant improvements in performance, including hit rate and accuracy. Originally brought to market in 2001, VeroVALUE developed a strong reputation for model quality, unsurpassed hit rates in key areas of the U.S. as well as reliable, transparent value estimate and confidence scores that correlate with valuation accuracy.
“We are dedicated to reestablishing VeroVALUE as the premier AVM in the industry,” said David Rasmussen, senior vice president of operations at Veros. “Veros has taken VeroVALUE’s performance to a higher, industry-leading level and AVM users have taken notice. We encourage all AVM users who are not familiar with VeroVALUE’s latest performance metrics to test the AVM.”
The Veros analytics team has applied a renewed focus to the AVM’s data sources, data management, models and due diligence. The enhancements, which include model optimization and adjustments to selection and weighting, applied to VeroVALUE’s already extremely sound and highly functioning models have amplified the AVM’s performance on a national level.
VeroVALUE is benefiting from an increased frequency of data as well as the availability of additional physical characteristics and other data points relevant to the subject property. The additional data is derived in part from the inclusion of MLS data, which also provides its own distinct benefits to the AVM. Veros’ technology is second to none with more efficient hardware to allow better data currency and multiple data servers dedicated to discerning “good” properties from those expected to create data issues and conflict in the valuation. When issues are identified, Veros’ work continues, using this knowledge and the company’s proprietary tools to specifically target areas for future enhancement, issue resolution and deeper optimization.
“AVM enhancements aren’t rolled out overnight,” Rasmussen said. “Any strong analytic tool needs constant care and maintenance. The current results generated by VeroVALUE are the efforts of numerous months of due diligence and testing to ensure highly accurate data. These results are expected to continue to improve as the attention remains keenly focused on VeroVALUE’s optimization. Clients are reporting increases to their accuracy and hit rate numbers, both in new sale and refinance transactions.
“Delivering a sound valuation is a dedicated discipline at Veros. Our clients should continue to expect transparent and sound valuation estimates, as well as the flexibility to pair results with relevant supplemental analytics. It is our goal with VeroVALUE to meet or exceed compliance standards and set the bar for industry innovation.”
Veros offers a total solution with variations of VeroVALUE designed for accuracy, default markets, portfolio needs or expert-assisted valuations and can provide a comprehensive, finely tuned AVM cascade.