How a HomesEstimate is calculated

We use proprietary automated valuation models that apply advanced AI algorithms to analyze our data, to identify relationships between home-related data and actual sales prices. Home characteristics such as house size, location or the number of bathrooms are given different weights according to their influence on home sale prices over a specific period of time. This results in an AI model that generates each home's HomesEstimate. Specifically, some of the data we use in this algorithm include:

• Property attributes:

Location, land area, house size, number of bedrooms, bathrooms, decade built and many other details.

• Rates assessments:

Property rates information and other information provided by the local council records.

• Prior and current transactions:

Actual sale prices over time of the home itself and comparable recent sales of nearby homes.

• Agent's appraisals:

When available, market appraisals provided to us by real estate agents are incorporated in the model to improve estimates for those properties.

Because we bring together data from several sources, updates to any of these inputs can shift the estimated range.

Note:

• Mortgagee sales are included in the HomesEstimates calculation. These transactions are still considered a reasonable estimate of the market value of properties in the area and will be included.

• Related-party transactions are not included in the HomesEstimates calculation.

  The HomesEstimate is intended to provide an estimate of the price that a home would fetch if sold in a full-value, arms-length sale (e.g. the sale isn't for partial ownership of the property or between family members).  This means that when related-party transactions for a property have been recorded by the council, we will show these transactions on homes.co.nz for that property, but ignore them for the purposes of estimating HomesEstimates in the area.