Every day the NVM broker faces the question what is the current market value of a home. Be it:
- determining a good asking price for a home for sale,
- advising on a reasonable price when purchasing a home or
- appraising for a mortgage lender or in case when children inherit their parents’ house, for example,
Again and again, an answer is needed to the question what is the current market value.
We have developed our Automated Valuation Model (AVM) “Wonen MarktPositie” together with QDelft and Mirabeau to support the broker in estimating the market value of every house. This can be the current market value, but also the market value at a moment (the valuation date) in the past or the near future. Furthermore, “MarktPositie” provides an overview of comparable homes sold and homes sold nearby. “MarktPositie” also provides insight into the supply of comparable homes and the supply in the neighborhood.
Despite its performance, “MarktPositieis” nothing more than a tool that the real estate agent cannot replace. The broker’s specific knowledge is, and remains necessary to assess the indication of the market value provided by “MarktPositie” and to decide on a value based on his knowledge and experience. Thus, it is the broker who ultimately determines the value and is responsible for it. Not the valuation system.
To determine the value, “MarktPositie” uses the NVM’s MIDAS database containing all homes reported through NVM brokers. Given the characteristics of an individual home, MarktPositie searches the NVM database for those homes that are comparable from a market point of view, ranks them by similarity, and issues a recommended price based on an econometric analysis of the price determining factors.
”MarktPositie”: the rose, the characteristics of the property to be valued relative to the average home and the full set of comparable homes