AI Valuations: Precision, Confidence Intervals, and Pricing Discipline
AVMs digest comps, renovation signals, neighborhood trends, and seasonality to present a price with a confidence interval. Instead of debating a single figure, teams discuss risk tolerance. Are you measuring median absolute error by sub-market to keep models honest? Tell us how you validate.
AI Valuations: Precision, Confidence Intervals, and Pricing Discipline
A retired teacher we met priced her bungalow after reviewing an AVM’s range plus renovation uplift scenarios. She still leaned on her agent’s intuition but used the model’s interval to anchor expectations. The listing went live at a defensible midpoint and drew qualified traffic fast.
AI Valuations: Precision, Confidence Intervals, and Pricing Discipline
Track valuation drift versus closing prices, explainability of key drivers, and model sensitivity to sparse comps. Watch how quickly models update after material events, like zoning shifts. If your team uses multiple AVMs, compare their dispersion and share which conditions break them.
AI Valuations: Precision, Confidence Intervals, and Pricing Discipline
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