What is Scoring Value Analyses ?
Scoring value analyses -is the system that calculates the value of real estate – commercial objects and residential property. Property market is huge and all of its units should be assessed in order to know the market value and make a profit from investment in facilities afterwards. Now we are evaluating simple objects, but we are planning to add complex algorithms from the appraisal practice - a cost approach or discounting cash flows. This is what large consulting companies Big 4, Ernst & Young, Deloitte, KPMG practice
How is SAS useful?
SVA defines property value based on standard evaluation algorithms, which we upgraded. Appraisal practice in Russia has existed since about 1991, this is the time when a document appeared for the first time at the state level and consolidated the norms of appraisal practice. We took them as a basis, complicated the algorithms, applied machine learning and created a service that, without human intervention, allows us to estimate the value of real estate and excludes the occurrence of a human factor, that is, a possibility of error.
What processes does SVA automate?
Let's deal with the main categories. Appraisal is a branch of consulting, appraisers are people who have expertise in real estate and economics. Appraisers' work starts with the selection on the CIAN or other marketplaces with listings, which can be used as analogs because the assessment involves the selection and adjustment facilities. This is the essence of the comparative approach - the most common in the world, since the market is the best reference point. If you use other algorithms, you can face the fact that the market lives its own life and you cannot focus on anything other than the market. If there is a price list for a certain product or service on the market now, it consists of a large number of factors.
Appraisers select the most similar properties on the market, then, using coefficients and adjustments, they try to bring analogues to their real estate object according to the given characteristics. And then the average value is displayed based on analogs and new adjusted values. After that, according to the legislation, the appraiser needs to generate an appraisal report - a conclusion on the main characteristics and prices in the volume of 60-80 pages. The report contains data on analogs, how they got the cost, who made the calculations. It takes several hours, due to monotony, evaluators often make mistakes, this negatively affects the quality of the evaluation.
Our service is built according to the same logic, only automation allows us to avoid mistakes. We use traditional methods, proven by decades of evaluation practices, as well as adding machine learning algorithms that case is, to evaluation at times better and faster.