“To see what is in front of one's nose needs a constant struggle."
We’re getting better at accurately estimating property values. Researchers at the forefront of this field developed a pricing model that consistently predicts a property’s price within 10% of its market value, and in an even tighter range if that property has sold more than once in the data set. You may think that’s a wide margin for error, but it outperforms what most practitioners would consider best-in-class valuations today: in a few seconds their model provides an estimate of value that is more accurate than the average appraisal. And with a little work the researchers believe these results could be improved “quite considerably.”1
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