Bringing together both human and machine intelligence, JLL has launched a new automated valuation model for residential real estate in Australia.
An automated valuation model, or AVM, is an algorithm-based computer program which estimates real estate value at a point in time.
JLL’s model takes the standard AVM a step further by combining data, analytics and real property intelligence from valuation professionals.
“Putting an accurate value on a property is core to multiple aspects of our economy,” says John Talbot, JLL’s managing director of advisory and consulting in Australia.
“Machine learning with predictive analytics tools that leverage the power of big data are increasingly becoming part of the process globally.”
Talbot says JLL’s AVM will improve its service, products and support to clients, “as we can combine the power of artificial intelligence with the human intelligence of our experienced valuation professionals”.
“We are working towards a portfolio of analytics services, which will give our clients the ability to ‘self-serve’ across a portfolio or at an individual property level,” Talbot adds.
According to Bart Mead, JLL’s managing director for mortgage valuations in Australia, proptech – or property technology – is changing real estate.
“Until now the market has had to rely on AVMs and analytics from technology and media companies, which means that decisions are based on algorithms only and lack the input of the professionals who work on the ground and across the market every day,” Mead explains.
“JLL has invested heavily in technology and people to build our in-house analytics team. We have assembled a team of experts who have an entrepreneurial technology background which is helping us to evolve our valuations business model.”