DeutschlandHedonic models for private property
The core of digitalized valuation processes at banks and brokerage houses are hedonic models for condominiums and single-family homes. These statistical sales comparison models are based on well-documented transaction data.
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Focus on utility
With hedonic models, the focus lies on the utility of a property’s various characteristics. Statistical models measure the influence of individual characteristics on the transaction price. FPRE uses hundreds of thousands of transaction records for this purpose. The resulting utility functions allow a nationwide quality-adjusted prediction of market values for properties of arbitrary specifications on locality level.
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Self-learning system
The hedonic models of FPRE are recalibrated on a quarterly basis. The integration of the most current data ensures that the models mirror the latest market developments. The model learns from itself every quarter and thus ensures a spatially robust model landscape.
- Quarterly updates
- Comprehensive quality reports
- Review by professors
- State-of-the-art methods
