Calculating the value of a property


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Working out the value of a property is a complicated business, with tons of factors to consider. Property data specialist Lightstone has turned the gathering, processing and reporting of property data into a fine art.

Lightstone uses advanced computer programs powered by artificial intelligence (AI) to figure out how much a house or a commercial property is worth. They've been doing this since 2006, when they introduced their Automated Valuation Models (AVMs). In 2019 the company integrated AI into the process and launched the AI Automated Valuation Model (AiAvm). Lightstone’s methods are popular among South African banks, insurers, estate agents and property investors.

Here's how it works, step by step:

  1. Collecting property information:
    Lightstone gathers tons of information about properties. This includes details on the size of the property, the neighbourhood it's in, when it was last sold, and so on. They gather as much data as possible from a variety of sources to help them figure out the property's value.

  2. Cleaning and filtering the data:
    Think of this like tidying up a messy room. The experts at Lightstone make sure the information they have is accurate and relevant before inputting it into their systems.

  3. Using smart computers:
    Lightstone uses advanced computers that can learn from all the information they gather. These computers are trained to understand patterns and trends in the property market. They use different techniques, like neural networks (NNs), convolutional neural networks (CNNs), and gradient boosting to help them figure out property values accurately.

  4. Regular updates:
    The AI doesn't stop learning. It keeps getting better because it's updated regularly. It’s like getting better and better at a sport each time you practise. That's what happens here. The AI gets better at estimating property values as it learns more.

  5. Accuracy and coverage:
    Lightstone’s AI system isn't just accurate; it's also fast. It can make property value estimates every day if needed. This ensures that banks, insurance companies, property investors and estate agents can get up-to-date information around the clock.

In simple terms, Lightstone uses AI, together with large amounts of data, to provide accurate information on how much a house or a commercial property is worth. This helps banks, insurance companies, property investors and estate agents to make well-informed decisions about loans, insurance and investments.





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Source: Lightstone


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