How much is my property worth? What is the right price to pay for a house? Online artificial intelligence tools (AI), such as those created by Montreal companies JLR and Doormath, try to answer these questions.
These applications calculate a range of values by combining several data, such as the land evaluation role, the year of construction, the size of the property, the area of the land and the location of the property.
The calculation of estimates gains in precision if the user adds additional information to it, such as the state of the property, the immediate renovation needs and the characteristics specific to the house.
The report provided by JLR has a reliability index based on the quantity and quality of the data collected by its tool.
For example, with an index of 5 stars, the model considers that the property should be sold inside an interval of 10 % of the median value of the range, in 90 % or more cases. At 3 stars, this probability drops to 70 to 79 %.
“These remain automatic values from statistical models. The evaluation tends to be better in more densely inhabited and homogeneous areas, ”recognizes Christian Boivin, director, strategy and execution of data, at JLR.
The peeled house
While the JLR tool, called Evia, takes into account comparable sales in its calculations, Doormath software avoids using this data deemed “subjective” by its designer, Sébastien Millette.
“The problem is that there are never two identical houses. If the neighbor has sold his house with a garage and you don’t have, what value is it attributed to the garage? Each broker assesses this in his own way. And if the neighbor’s house sold eight months ago, what is the evolution of the market? All these small adjustments end for lack of objectivity, ”argues Mr. Millette, himself a real estate broker.
Doormath dissects the room room by room to establish the value of the property according to the sector.
“We are able to say how people pay Depending on the number of square feet, garages, rooms, etc. We add the values of these variables to reach a final price. Obviously, a garage in Old Montreal and a garage at the Laval crossroads, it’s not worth the same, ”recalls Sébastien Millette.
On the Reddit forum, Internet users have argued that Doormath tends to be mistaken for tens of thousands of dollars. Its designer confirms that the tool can display an erroneous assessment if the description of the house is not exact.
“We are counting on the user to give us information on the property to have the right price. Most of the time, people are limited to typing the postal address. But you have to take the time to put the right information to have the right price, ”argues Mr. Millette.
The use of the JLR tool costs $ 20 to $ 30 per request. Doormath app is free.
Consult the JLR website
Consult the Doormath website
