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Automated Valuation Model

A clear, transparent and reliable automatic assessment tool

In an asset quality review perspective or a transactional process, it is not always easy to access to a valuation of large residential portfolios. Deloitte has developed a specific tool that enables to assess the value of large residential portfolios on a property-by-property basis.

Our solution

 

The AVM by Deloitte solution is a certified methodological approach that enables to assess the value of large residential portfolios. We primarily aimed at banks, funds, institutional investors, private or semi-public residential property companies, regulators, etc. Our methodology is in line with the highest standards of risk management: no “black box” effect should be anticipated.

AVM relies on free access data collection and processing to provide a transparent and reliable approach ensuring the accuracy and consistency of the output data.Our tool thus makes it possible to estimate the value of a residential portfolio in a very short period of time and at a controlled cost, offering a competitive advantage in competitive transactions.

How does it work ?

 

To estimate residential assets, our AVM tool will be run taking into account several criteria :

  • Location of the asset (zipcode and street – assumed provided)
  • Type of residential asset (apartment vs house for example). If the information is not available, we will consider an average index across residential asset types
  • Surface area by asset

The AVM tool will be used based on existing information with no data remediation.

The output of the tool will enable to cross-check the output of the indexation approach for residential assets. A reliability scoring could be taken into account considering the various sources of the appraised values.

Please note that our AVM by Deloitte tool is not based on a web-scraping process, preventing our client from inappropriate use of private data available on the internet, but subject to copyright.