When it comes to estimating the value of a subject property, Bradford Technologies is hoping more appraisers will look to regress — that is, use regression analysis — when determining a property's value.
Toward that end, the company is rolling out CompCruncher 2.0, which empowers appraisers to interactively model and analyze entire markets using regression analysis.
"CompCruncher 2.0 analyzes up to 500 different properties over a one year period to help take the guess work out of determining value," said Jeff Bradford, CEO of Bradford Technologies. "No appraiser can do that quickly or cost-effectively by hand. That’s why we developed this technology."
The use of regression, as well as other more complex statistical techniques, can model how certain variables can collectively and individually impact a properties value.
And while these tools have long underpinned much of the automated valuation marketplace, executives at Bradford are hoping to arm appraisers with some of the same technology.
"By nature, a property’s value is determined by the value of neighboring properties, but the problem is that no two properties are alike, and there are virtually limitless numbers of variables that can make one property’s value different from another," said Mark Linne, chief strategic and valuations officer for Bradford Technologies.
Without regression analysis, Linne says, appraisers are forced to rely on subjective estimates to determine how one property’s value is affected when certain variables are different and others stay constant.
Bradford says the new technology will enable appraisers to give lenders a statistically valid degree of confidence in an appraisal.
The company has already trained more than 2,600 appraisers nationwide on how to use regression analysis in their local markets, according to a statement.