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24-399: Its brands include the property website Zoopla, automated valuations (AVMs) provider Hometrack, and software brand Alto. Alongside these sites, Houseful owns and operates several brands providing services to estate agents, housebuilders, brokers, lenders, and consumers. These include Jupix, Calcasa, Primelocation, Yourkeys and Mojo. ZPG Ltd., Houseful's previous parent company, which included

48-449: A property might be worth in order for them to lend against the valuation. The advantages of using AVMs over traditional appraisals are that they save time, money and resources (e.g. there are no transport requirements), thus lowering the cost of valuing a property. Many AVMs can be used with little cost, so more choices in valuation methodology are also possible. It is claimed that unlike traditional appraisals, AVM outputs do not suffer from

72-860: A $ 2.2 billion bid for ZPG's property division (now Houseful) and its comparison division RVU. The transaction was completed in July 2018. In September 2023, the ZPG property division was renamed Houseful to reflect the evolution of the business from a property website to a software, data and insights business in residential property. ZPG’s comparison division remains known as RVU. Houseful operates across three distinct business units: Homes, Software, and Data and Risk. The Homes business unit includes Zoopla, Mojo Mortgages, and Prime Location. The Software business unit connects businesses and consumers, powering more than half of all UK housing transactions each year. It includes brands Alto, Jupix, and Yourkeys. The Data and Risk business unit

96-501: A final estimate of value based on a specified date. An AVM typically includes: In the late 1990s, in the US, this technology was used primarily by institutional investors to determine risk when purchasing collateralized mortgage loans. AVMs gained traction in the UK in the early 2000's with the emergence of UKValuation and Hometrack. AVMs are increasingly used by mortgage lenders to determine what

120-472: A physical inspection, with lower risk mortgages or borrowers being assessed via a AVM. Sales comparison approach The sales comparison approach ( SCA ) is a real estate appraisal valuation method that relies on the assumption that a matrix of attributes or significant features of a property drive its value. For examples, in the case of a single family residence, such attributes might be floor area, views, location, number of bathrooms, lot size, age of

144-418: A purchaser would not purchase an improved property for any value higher than it could be replaced for on a site with equivalent utility , assuming no undue delays in construction. In practice, the most common SCA method used by estate agents and real estate appraisers is the sales adjustment grid. It uses a small number of recently sold properties in the immediate vicinity of the subject property to estimate

168-589: A significant effect on value. Initial concern over the effectiveness of AVMs in falling markets have now been answered as the best performing models have remained highly effective throughout the latest downturns although their use for "retrospective valuations" has contributed to wasteful activity in some areas – this is not a fault of the tools but a lack of appreciation by some of those using them. Many AVMs are also using transactional data, which may lag anywhere from three to six months, although surveyors are similarly restricted in terms of data recency. Therefore, this

192-419: Is a good data source, but still does not account for changes in current market conditions. AVM's have been used by mortgage lenders in increasing numbers over the last 15 years, and are particularly effective where the housing stock is very generic, such as newer housing estates. In areas with a larger variety of property types and styles it is much less effective. Most high loan to value ratio loans will require

216-675: Is focused on increased automation across the mortgage lending and wider property industries. It includes the brands of Hometrack and Calcasa. Automated valuation model An Automated Valuation Model (AVM) is a system for the valuation of real estate that provides a value of a specified property at a specified date, using mathematical modelling techniques in an automated manner. AVMs are Statistical Valuation Methods and divide into Comparables Based AVMs and Hedonic Models. Other Statistical Valuation Methods are House Price Indices and Single Parameter Valuations. Comparables Based AVMs select comparables for each individual valuation based on

240-572: The Daily Mail and General Trust , floated Zoopla on the London Stock Exchange in June 2014. In June 2015, Zoopla bought the price comparison website Uswitch for £190m. In February 2017, the company changed its name to ZPG plc. In September 2017, Zoopla purchased the financial services comparison website Money.co.uk for £140 million. In May 2018, US private equity firm Silver Lake Partners made

264-642: The Guardian Media Group . In August 2009, Zoopla acquired the PropertyFinder Group, consisting of the websites Propertyfinder.com, Hotproperty.co.uk and UK Property Shop , from prior owners the REA Group and News International for an undisclosed sum. These businesses had combined annual revenues of £7 million. In January 2011, Zoopla acquired the historic database of UK house prices HousePrices.co.uk. In October 2011, Zoopla and Digital Property Group,

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288-401: The analysis of public record data and computer decision logic combined to provide a calculated estimate of a probable value of a residential property. An AVM uses a combination of two or more types of evaluation, - but most commonly, a hedonic model and a repeat transaction index. The result of each model is given a Confidence Score and then weighted by that score, analyzed and then reported as

312-535: The brands USwitch and Money.co.uk, was listed on the London Stock Exchange until it was acquired by Silver Lake Partners in July 2018. The company was originally founded as Zoopla in 2007 by Alex Chesterman and Simon Kain. Chesterman and Kain also founded ScreenSelect (later LoveFilm ). The Zoopla website was launched in January 2008. Zoopla was backed by Accomplice, Octopus Ventures and other investors. In July 2009, Zoopla acquired property website Thinkproperty.com from

336-425: The characteristics of the property to be valued. They therefore operate similarly to how an appraiser would work when valuing properties through the sales comparison approach . Hedonic Models on the other hand try to isolate the impact of individual property characteristics in the form of pre-calculated parameters. When doing a valuation using hedonic models no actual comparison or automated processes take place, but

360-411: The impact of different attributes on property value. Research has shown that the sales adjustment grid and the multiple regression model are theoretically the same, with the former applying more heuristic methods and the latter using statistical techniques. Spatial auto regression plagues these statistical techniques, since high priced properties tend to cluster together and therefore one property price

384-445: The mathematical equations they use. As base of data AVMs can use sale prices, values from previous valuations or asking prices. Appraisers, investment professionals and lending institutions use AVM technology in their analysis of residential property. An AVM is a residential valuation report that can be obtained in a matter of milliseconds. It is a technology-driven report. The product of an automated valuation technology comes from

408-425: The property and condition of property. This method is in contrast to the two other main pricing methods for real estate which are cost approach and income approach . The sales comparison approach is based upon the principles of supply and demand , as well as upon the principle of substitution . Supply and demand indicates value through typical market behavior of both buyers and sellers. Substitution indicates that

432-401: The provider can deliver a suitable level of accuracy. The disadvantages are that they do not take into account the property condition, as a physical inspection of the property does not occur and therefore the valuation produced assumes an average condition which may not reflect current reality. Purchasers relying on an AVM-backed mortgage application will need to get separate advice to establish

456-456: The same fraud risk although certain providers can have their systems manipulated intentionally or otherwise if property features are incorrectly entered. AVMs remove the human element from the valuation process and rely on computer objectivity so as to remove human bias and subjectivity. AVMs are particularly useful in assessing the value of a property portfolio. Using an automated model can also be useful for valuing an individual property where

480-474: The subsidiary of A&N Media, operating property websites Primelocation.com, Globrix .com and FindaProperty.com, merged their respective businesses. In May 2012, Zoopla acquired property information website UpMyStreet.com. In April 2016, Zoopla acquired property software firm PSG for £75 million from Lloyd’s private equity arm LDC. In May 2018, Hometrack sold off the Australian arm of its business for £71m. It

504-601: The true condition of the property. New build property is particularly difficult to value due to the lack of comparable properties and historic data; however, an advantage of AVMs is that they pull on a larger pool of comparables and as such are not prone to incorporating the claimed 'new-build premium', although it would rely on comparables from physical inspections to achieve this. Other data sources used are sometimes misleading due to concealed incentives in recorded sales prices (e.g. Land Registry ). AVMs also do not work particularly well on large blocks of flats where aspect can have

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528-438: The value is instead calculated by filling property characteristics into specific mathematical equations that contain the pre-defined parameters. Because Comparables Based AVM select comparables based on the individual property to be valued, the valuation result can be traced. This is not the case with Hedonic Models. Hedonic Models also rely on more generalizations as they only consider those variables that have been parameterized in

552-415: The value of its attributes. Adjustments to the comparables may be determined by trend analysis, matched-pairs analysis, or simple surveys of the market. More advanced researchers and appraisers commonly employ statistical techniques based on multiple regression methods which generally compare a larger number of more geographically dispersed property transactions to determine the significance and magnitude of

576-413: Was sold to property portal and media business REA. In January 2021, Hometrack acquired the mortgage automation arm of EDM Group. In November 2020, ZPG sold the company Ravensworth back to its original owning entity, The Printed Group. In April 2021, the company acquired software provider Yourkeys. In June 2012, Zoopla and its constabularies formed Zoopla Property Group Ltd. Zoopla's biggest shareholder,

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