Lender Processing Services Inc. (LPS), a provider of integrated technology and services to the mortgage and real estate industries, has announced the release of the Realtor Valuation Model (RVM) from its LPS Applied Analytics division. The LPS RVM is the only automated valuation model (AVM) with duly licensed multiple listing services (MLS) data drawn from the Realtors Property Resource (RPR).
The RPR is a parcel-centric information database launched by the National Association of Realtors (NAR), covering all of the more than 147 million property parcels in the country as a resource for NAR members. By leveraging this information for the development of the RVM, LPS Applied Analytics expands the reach of traditional automated valuation, bringing listing and pending sale data into the equation.
"With the introduction of the LPS RVM, users now have housing supply information at their fingertips," said Robert Walker, managing director, valuations, for LPS Applied Analytics. "By factoring listings and pending sales in the report, it becomes easier to better understand the external factors impacting the value of a specific property."
In testing, the LPS RVM has proven extraordinarily accurate when compared with other comparative AVMs. In a sampling of Maricopa County, Ariz. (Phoenix) properties, for example, the LPS RVM correctly predicted the selling price of a property 72 percent of the time. According to Walker, this high accuracy is the direct result of the addition of MLS data fully licensed by RPR.
"Think of the LPS RVM as adding the market knowledge of a Realtor," Walker said. "Imagine how difficult it would be for a Realtor to accurately price a property without access to MLS data. Many times the listing value defines the upper end of value for a particular property. Knowing the current listing information is a big advantage in terms of valuation accuracy for the LPS RVM."
For more information, visit www.lpsvcs.com.