AI-Powered Property Estimates Explained

Overview

RESTimates is our advanced artificial intelligence feature that provides property value estimates using machine learning technology. Our system analyzes market data to deliver reliable predictions for both on-market and off-market properties.

How RESTimates Works

Machine Learning Foundation

RESTimates uses a sophisticated machine learning model trained on comprehensive market data. The system continuously learns from real estate transactions to provide the most current and accurate estimates possible.

Weekly Model Updates

Our AI model is automatically retrained every Sunday using the latest transaction data. This weekly refresh ensures that RESTimates adapts quickly to changing market conditions, seasonal trends, and emerging patterns in real estate pricing.

Feature Impact Analysis

The model intelligently determines which property characteristics have the greatest influence on selling price by testing thousands of feature variations. Through rigorous accuracy testing, the system identifies the most predictive factors, which typically include:

• Square footage - Total living space and lot size
• Location factors - Neighborhood, school districts, proximity to amenities
• Property type - Single-family, condo, townhouse, etc.
• Property age and condition
• Market timing and seasonality
• Comparable sales data

The model's feature selection process is entirely data-driven, ensuring that estimates are based on the factors that truly matter for property values in your specific market.

Two Model Types

RESTimates provides two distinct models to serve different needs:

On-Market Model

Best for: Properties currently listed for sale

The on-market model delivers higher accuracy by incorporating the property's current list price into its analysis. This model is ideal when:

• Properties are actively listed
• List price information is current and available

Off-Market Model

Best for: Properties not currently for sale

The off-market model provides valuable estimates without requiring list price data. This model is particularly useful when:

• Homeowners want to know their property's current value
• Properties are not actively listed
• You need an objective valuation independent of listing price

Why Use Both Models for Listed Properties

For properties currently on the market, we recommend considering both model predictions. Here's why:

List Price Impact on Accuracy

The on-market model's reliance on list price can be both a strength and a limitation:

Strength: When properties are priced accurately, the on-market model provides better precision.
Limitation: When properties are mispriced, the model's accuracy can be affected.

Common Pricing Scenarios

• Strategic low pricing: Some agents price below market value to generate interest and bidding wars
• Overpricing: Properties may be listed above market value due to seller expectations or agent inexperience
• Market timing: Pricing strategies may not reflect current market conditions

Getting the Complete Picture

By comparing both on-market and off-market predictions for listed properties, you can:

• Identify potential pricing discrepancies
• Gain confidence in estimates when both models align
• Spot opportunities where list price may not reflect true market value
• Provide more comprehensive guidance to clients

Best Practices

For Listed Properties

• Review both on-market and off-market estimates
• Consider the difference between estimates and list price
• Use discrepancies to identify potential pricing opportunities

For Off-Market Properties

• Rely on the off-market model for objective valuations
• Consider recent market trends in your interpretation
• Remember that actual sale prices can vary based on marketing, timing, and negotiation

General Guidelines

• RESTimates are most effective when combined with local market knowledge
• Consider the model's confidence level and data availability for each property
• Use estimates as a starting point for deeper market analysis

Frequently Asked Questions

Q: How often is the model updated? A: The model is automatically retrained every Sunday with the latest market data.
Q: Which model should I use for a property that just came on the market? A: For newly listed properties, compare both models to ensure the list price aligns with market expectations.
Q: Why might the two models give different estimates? A: Differences often indicate pricing strategies or market perceptions that don't align with fundamental property values.
Q: How does RESTimates handle unique properties? A: The model analyzes thousands of features to find comparable patterns, but highly unique properties may require additional professional assessment.

Technical Notes

• Models are trained using supervised learning techniques
• Feature importance is determined through statistical accuracy testing
• The system processes both structured data (property characteristics) and market dynamics
• All updates are automated to ensure consistency and timeliness

For additional support or questions about RESTimates, please contact our technical support team.

Updated on: 04/06/2025