CALCASA AVM
Accurate and objective automated property valuations
CALCASA® is the leading Automated Valuation Model (AVM) in the Netherlands. This model provides a quick, accurate, and reliable estimate of the current open market value and the foreclosure value of a given residential property, based on comparable sales and hedonic regression techniques.
CALCASA automatically selects the relevant market information and the appropriate method of aggregation needed to ascertain the value of the property. This method allows for an objective valuation that is free of human subjectivity and possible bias.
The time gap between the time of sale of the comparable property and the present is filled using the WOX® index methodology. Hedonic price models, based on nonlinear multilevel regression, are combined with Bayesian spatio-temporal modeling techniques to control for differences in location and property characteristics.
As well as providing a valuation for the subject property, CALCASA also returns an indication of the accuracy of the valuation (the Confidence Level). This Confidence Level allows users to establish risk management rules when using automated valuations. The greater the degree of certainty indicated by the Confidence Level, the greater the probability of an accurate valuation and the lower the likelihood that the AVM will overvalue or undervalue the property by more than a defined percentage.
The CALCASA AVM is the leading AVM in the Netherlands - with unparalleled accuracy and coverage. This is due to the combination of a scientifically sound methodology and the proprietary database with 5 million price points and characteristics of all 3.5 million owner-occupied properties. ABF is continually proccessing information from more than 300 data sources to keep the model up-to-date.
The CALCASA AVM has been extensively back-tested internally and by clients and rating agencies since 2000. Accuracy studies on CALCASA are available on request. CALCASA is recalibrated every month. This involves an update of all databases, a comparison of past AVM valuations and new price information and a re-estimation of the parameters of the model. This approach ensures that our performance is continuously monitored and that CALCASA never yields biased valuations in a volatile market.
For further information on the CALCASA AVM methodology, accuracy studies, or the Fitch Ratings Criteria Report on CALCASA, please contact us.
