Property Evaluation AI Tool
Let's Talk Real Estate Valuation: JLR vs Doormath
Gone are the days of confusing guesswork when it comes to determining the worth of a property. Enter AI-powered property valuation tools, such as Montreal-based companies JLR and Doormath, who aim to crack the mystery of property pricing.
André Laroche, a collaborator from JLR, reveals these applications compute an estimated range of values based on factors like the property's evaluator, construction year, size, land area, and location. The more additional details you provide, such as the property's condition and unique characteristics, the more accurate the estimate.
JLR uses a reliability index to indicate the tool's confidence level in the estimated value. For instance, a 5-star index suggests a 90% probability of the property falling within a 10% interval of the median value, while a 3-star index drops that probability to around 70-79%.
However, Christian Boivin, Director of Data Strategy and Execution at JLR, concedes that the AI model's accuracy tends to improve in densely populated and homogeneous areas.
Unpacking the House Value
What separates JLR from Doormath is how they analyze the data. While JLR's tool, EVIA, considers comparable sales, Doormath's software avoids using these data due to their subjectivity, according to its creator Sébastien Millette.
Millette, who is also a real estate broker, argues that comparing houses can be misleading since no two houses are exactly alike. By analyzing each component of a house, such as square footage, number of garages, and bedrooms, Doormath determines the property value in its sector. Millette explains, "For instance, a garage in Old Montreal will have a different value compared to one in Laval Cross."
The question of accuracy has come up on the Reddit forum, with some users alleging that Doormath misses the mark by tens of thousands of dollars. Millette points out that inaccurate evaluations can occur when the house description provided does not accurately represent the property.
"We rely on users to input accurate information about the property to get an accurate price. Most people just insert the postal address. But to get the right price, you need to take the time to input the right information," explains Millette.
Using JLR's tool costs around $20 to $30 per request, while Doormath's app is free.
Explore JLR's Tools Try Out Doormath Today
When it comes to accuracy, AI-powered tools like JLR and Doormath generally outperform traditional methods in processing vast amounts of data, minimizing human bias, and offering real-time market insights. However, the specific details about these companies aren't widely available, so their performance ultimately comes down to their unique features and implementation.
- In an approach contrasting JLR's EVIA, Doormath's software forgoes the use of comparable sales, citing their subjectivity, as suggested by its creator, Sébastien Millette.
- Real estate broker and Doormath's creator, Sébastien Millette, advocates that the unique analysis of individual house components, such as square footage, number of garages, and bedrooms, is integral to determining property values sector by sector, as opposed to relying on vague comparable sales.
