Il AUSTRALIA F B RICE & CO Patent and Trade Mark Attorneys Patents Act 1990 RESIDEX PTY LIMITED COMPLETE SPECIFICATION INNOVATION PATENT Invention Title: Computer System and Method for Displaying Price and Rating Information about Real Estate Properties The following statement is a full description of this invention including the best method of performing it known to us:- 2 Title Computer System and Method for Displaying Price and Rating Information about Real Estate Properties 5 Technical Field This invention concerns a computer system and method for displaying price and rating information about real estate properties. The information may be related to residential properties for sale or rent. The invention also concerns software for implementing the 10 method. Background Art A number of web sites exist, generally sponsored by realtors that list real estate properties for sale. These sites provide information about the properties, images of the 15 properties and in some cases, sale price information. These sites may be searched according to a visitor's criteria to locate properties to purchase. The information published can also be used in other ways, such as to survey prices of like properties across different localities. 20 Summary of the Invention In a first aspect, the invention is a computer system comprising: a web server that publishes an interactive web site displaying price information related to a selected real estate property, or rating information for the property relative to other properties in the same vicinity, or both; 25 a processor that uses sales or rental information relating to real estate properties, or both, to automatically calculate the price or rating information, or both, for display on the web site; further, the web site provides a facility for visitors to respond to the information it displays, the processor uses the responses to automatically recalculate the price or 30 rating information, or both, and the web server automatically updates the displayed information with the recalculated information. The web site provides not only a service to prospective purchasers to determine a fair price range for a purchase, but also empowers prospective sellers to investigate the 35 likely sale price before approaching a realtor. It also allows members of the public to correct information that is published. Similarly in the rental market, prospective renters 3 are able to determine a fair rental range for a rental property. In doing these things, the invention provides an important social benefit in reducing price distortion in the housing market. 5 The price or rating information, or both, of a selected property may comprise a first price or rating, or both, which are recalculated by the processor based on property attribute data provided by a visitor in a response. The price or rating information, or both, of a selected property may comprise a second 10 price or rating, or both, which are recalculated by the processor based on a visitor's own price or rating in a response, the visitor being a realtor associated with the property. Further, the price or rating information, or both, of a selected property may comprise a third price or rating, or both, which are recalculated by the processor based on a 15 visitor's own price or rating in a response, the visitor being an owner, a prospective buyer, or a prospective renter. The processor may automatically operate to determine a measure of the likely veracity of each response, and then make a determination in each case whether or not to accept a 20 response. The measure of likely veracity of a visitor's response may be determined based on past responses of the visitor. If a response is accepted, the accepted response is then used to recalculate the price or rating information, or both. The computer system may further comprise an information portal to collect the sales 25 information from real estate agents, government agencies or the media as properties are sold or listed for sale for use by the processor. The computer system may also comprise a web crawler that operates automatically to traverse the Internet and locate sales or rental information relating to real estate 30 properties for use by the processor. The price or rating information, or both, for a selected property may be displayed on an interactive map on the web site, the map showing other real estate properties in the same vicinity for which price or rating information, or both, is available. 35 4 The web site may further provide a facility for a visitor to obtain a price or rating for a real estate property for which price and rating information is not displayed on the web site based on information provided by the visitor. 5 The web site may further provide a facility for a realtor to construct a report on a selected property, the report including a range of prices for properties in the same vicinity and a rating associated with each price. In this case, contact details of a visitor who accesses the constructed report may be automatically collected and provided to the realtor. 101 The price information may relate to a sale or rental price. The price or rating information, or both, may be recalculated and in real time. Information published by the system might be available only to paying or registered visitors of the web site. 15 In another aspect, the invention is a method for displaying information about real estate properties, the method comprising the steps of: calculating price information relating to a selected real estate property, or rating information for the property relative to other properties in the same vicinity, or both, based on sales or rental information relating to real estate properties; 20 displaying the calculated price or rating information, or both, on an interactive web site which provides a facility for visitors to respond to the information it displays; and when a response is received from a visitor, automatically recalculating the price or rating information, or both, and updating the displayed information with the recalculated information. 25 The price or rating information, or both, of a selected property may comprise a first price or rating, or both, which are recalculated by the processor based on property attribute data provided by a visitor in a response. 30 The price or rating information, or both, of a selected property may comprise a second price or rating, or both, which are recalculated by the processor based on a visitor's own price or rating in a response, the visitor being a realtor associated with the property. Further, the price or rating information, or both, of a selected property may comprise a 35 third price or rating, or both, which are recalculated by the processor based on a 5 visitor's own price or rating in a response, the visitor being an owner, a prospective buyer, or a prospective renter. The method may further comprise the steps of automatically determining a measure of 5 the likely veracity of each response, and then making a determination in each case whether or not to accept a response. The measure of likely veracity of a visitor's response may be determined based on past responses of the visitor. In the event a response is accepted, the accepted response is then used to recalculate the price or rating information, or both. 10 The method may also comprise the step of collecting the sales information from real estate agents, government agencies or the media as properties are sold or listed for sale. In addition, the method may comprise the step of automatically traversing the Internet to locate the sales or rental information relating to real estate properties. 15 The price information may relate to a sale or rental price of a real estate property. The web site may further provide a facility for a realtor to construct a report on a selected property, the report including a range of prices for properties in the same vicinity and a rating associated with each price. In this case, the method also comprises the steps of 20 collecting contact details of a visitor who accesses the constructed report and automatically providing the collected contact details to the realtor. The price or rating information, or both, for a selected property may be displayed on an interactive map on the web site, the map showing other real estate properties in the 25 same vicinity for which price or rating information, or both, is available. The method may also comprise the step of calculating a price or rating for a real estate property for which price or rating information, or both, is not displayed on the web site based on information provided by a visitor. 30 Further, the step of recalculating the price or rating information, or both, may be performed in real time. The price or rating information, or both, displayed may also be available to paying or registered visitors of the web site. 35 In a further aspect, the invention is software for implementing the method.
6 Brief Description of the Drawings Examples of the invention will now be described with reference to the accompanying 5 drawings, in which: Fig. I is a system diagram including a screenshot of a typical web page generated by one example for sales properties. It will be understood by the reader that these data shown in this drawing is for the purpose of example only and that it does not reflect real ratings or values. 10 Fig. 2(a) is a screenshot of "have your say" feature. Fig. 2(b) is a screenshot of "report" feature. Fig. 3(a) and (b) are screenshots of "price estimates" feature. Fig. 4 is a process diagram giving an overview of the example. Fig. 5 is a process diagram giving the interaction between a real estate agent and 15 the web site in the example. Fig. 6 is a screenshot of "Property Administration" interface. Fig. 7 is a screenshot of an "Attribute Confirmation" interface. Fig. 8 is a screenshot of an interface for an agent to provide rating, price estimate, a link to an advertisement and comments. 20 Fig. 9 is a screenshot of an interface for an agent to construct a sponsored report. Fig. 10(a) is a screenshot of an enquiry summary page. Fig. 10(b) is a screenshot the web page updated with information provided by a realtor. Fig. I 1 is a process diagram giving the interaction between a member of the 25 public and the web site in the example. Fig. 12 is a process diagram of a second type of interaction between a member of the public and the web site in the example. Fig. 13 is a screenshot of a typical web page generated by another example for rental properties. 30 Best Modes of the Invention Referring first to Fig. 1, the invention is a computer system I that comprises a web server 2 that publishes an interactive web site 3 that displays information about residential real estate properties. The displayed information concerns specific 35 properties and involves a price range and rating relative to other properties in the same vicinity.
7 The system I also comprises an information portal 4 to receive sales or rental information relating to completed real estate property sales. 5 The system I also comprises a web crawler 5 that operates automatically to traverse the Internet 6 and locate sales information relating to real estate properties offered for sale. The web crawler 5 is also operable to locate rental information relating to real estate properties offered for rent. 10 The system I also comprises a processor 7 that uses information received from the information portal 4 and has the capacity to also use the information from the web crawler 5 to automatically calculate price and rating information for display. Further, the web site 3 provides a facility for visitors to respond to the data it publishes, 15 and the processor 7 automatically operates to determine a measure of the likely veracity of each response 8, and accordingly to make a determination whether or not to accept the response. If a response is accepted, the processor 7 operates automatically to recalculate affected rating and price information, and the web server 2 automatically updates the displayed information with the recalculated ratings and price information. 20 In particular, the web site 3 provides a map pane 12 showing a particular locality, and a user can navigate in any available fashion to move around the territory covered by the site; for instance the user may scroll the map North, South, East or West and zoom in or out using keyboard arrows, or by dragging a mouse. 25 A locality information pane 14 shows demographic information about the locality currently shown the map pane 12. It could also show many other kinds of information such as dwelling type, home ownership and crime statistics for the location. 30 In the map pane 12, real estate properties known to be for sale are flagged, as at 15. On the left hand side is a listing 16 of houses or units in the street where a flagged property has been selected. In this case, the listing 16 indicates that a flag at a unit at Murray Street, Pyrmont has been selected. This unit has a first rating awarded by the system of "5/10", and five of the house shaped icons are shaded accordingly. A range of prices 35 associated with the first rating is also indicated to be "$80 1k to $898k".
8 There is also a link to the selling agent's Internet listing and a summary of the amenity provided by the property in terms of icons indicating the number of car parks, bathrooms and bedrooms. This displayed information is not collected from the agent's Internet listing but is information that at some time prior to the listing being identified 5 by the web crawler 5 has been collected by the interactive web site 3 or the holder to the database which is used by the interactive web site 3. In addition, the listing 16 indicates a second rating given by the selling agent (provided the agent has elected to provide this information), in this case "7/10", and an associated 10 price range (not shown). The listing 16 also provides a third rating, "4/10", which is an average of the ratings given by other visitors such as prospective buyers and renters where the visitors have elected to do this, and an associated price range (not shown). The numbers of other houses for sale in the same street or location are also shown, 15 together with their accompanying rating icons. The user may select one house at a time out of the total number of properties found, in this case 61, to see the detail currently shown for No. 4. The interactive web site 3 provides a "have your say" feature 17 to allow visitors such 20 as prospective buyers, prospective renters, sellers, and realtors to respond to the price and rating information given. With reference to Fig. 2(a), the "have your say" feature allows a visitor to provide their own rating, price estimates, attribute data and comments for the selected property. The visitor will be asked to register with the system and login to their account before a response can be provided. 25 The interactive web site 3 also provides a "report" feature 18 for a selected property. Referring also to Fig. 2(b), this report feature 18 allows users to get a report on how the system identified the price and comparable rating. For example, users may order three types of report: 30 a "Right Price Report" which provides information on the statistical value range, property price tests used by the system, statistical comparison of similar properties in the area, the rental and growth potential of the properties and demographics about the suburb and its inhabitants; a "SMS Valuer Report" which provides an estimated price of a selected property 35 based on a rating provided by the user; and 9 a "Realtor Report" which combines the knowledge of the system and real estate agents to provide information on recent sales in the suburb of a selected property; the growth potential of that property; other properties which are for sale or rent in the area and the agent's comments on the property. 5 Finally, there is an advertising pane 20 for sponsored advertising on the interactive web site 3. Referring to listing 16 in Fig. I again, a visitor to the interactive web site 3 who has 10 navigated to Murray Street in Pyrmont, New South Wales can estimate the price of another (unrated) property in the same street by comparing the prices given for rated properties in that street having the same amenity; that is the same number of car parks, bathrooms and bedrooms. Alternatively the visitor who has, for instance, the asking price for a property in the street can estimate the amenity that price should provide. 15 The web site 3 also provides a facility for a visitor to obtain a price or rating for a real estate property for which price and rating information is not displayed on the web site 3. A visitor who clicks the "Price Estimates" tab I I is presented with a questionnaire to complete about the property of interest, which may be their own that they are planning 20 to sell, or a property they have visited and want to buy. As shown in Fig. 3(a), the questionnaire allows the visitor to provide different information to the information displayed by the web site 3. The visitor is also invited to provide attribute data and a comparative street rating of the property and may also upload a photo of the property. 25 The web site 3 will then operate automatically to calculate a price or price range for the property and transmit that resulting report by some method to the visitor. A sample report for 21 Lane Avenue in Newington, New South Wales is shown in Fig. 3(b), indicating an estimated price calculated by the system based on the rating provided by the user using the questionnaire in Fig. 3(a). The median value of houses and units in 30 the immediate area is also provided. The report may also be transmitted to the user by way of an email or SMS. The processor 7 develops a price, or price range, for each property entered in the database of residential properties. Where an agent seeks to list a property for sale on 35 their site the agent can seek from the web site 3 the calculated price and street rating and attribute data held by the web site 3 10 The processor 7 also uses any comments provided via the "have your say" functionality shown in Fig. 2(a) to recalculate the price as well as the rating. This is useful where, for instance, there is a difference of opinion between the selling agent and a prospective 5 purchaser about how many bedrooms a property has, or the condition of the property. The processor 7 also develops a range of ratings for all the properties in that street, and from that range determines a comparative rating for each property compared to the other properties in the same street. 10 Referring now to Fig. 4 the process of developing a price and rating will be described in more detail. The information portal 4 collects external data 22: Sale price data 26 and details of property 24 from real estate agents and State Governments around Australia as they make sales each day; and 15 Property attribute data 28 from real estate agents, State and Local Governments and the media in general as properties are sold or listed for sale. The processor 7 uses all of the collected information each month internally 30 to develop a price estimate 32 for each property in Australia, and attaches to each property 20 a price error tolerance and a comparative rating for each property 34 relative to other properties in the same street or vicinity. The process takes into account a number of things derived from the collected information, such as: Growth of similar properties in the immediate area. The historical sales prices of each property being assessed. 25 The rate of growth of properties in the immediate area. The value of properties of similar type in the immediate area. Each month the processor 7 also calculates and updates the property attribute data for each property using data collected by the web crawler 5 where that data is not available 30 from collection processes. The web crawler 5 is programmed to query other Internet sites, belonging to real estate agencies, of property listing portals to identify properties which are listed for sale; see 36 in Fig. 4. As a property is identified for sale by the web crawler 5, the processor 7 35 identified that property in the processor's database 9 and turns on a flag in the database 9 so the processor 7 in future can identify the property as being for sale. At the same I I time, the processor 7 captures the URL of their agent's listing, and adds the URL to the database 9; see 38 in Fig. 4. At this point, the web site 3 has access to a database 9 containing all properties in the 5 market where the system operates and hence has access to a complete data listing of properties which can be identified as being for sale and each for sale property has attached to it: A URL identifying where the property for sale notice can be located 38; Details of the property 24 such as the address; 10 Property attribute data 28, which includes the number of bedrooms, bathrooms and garages, dwelling type and where applicable, land size. This data is generally collected or calculated from data held or previously provided by real estate agents, governments or the public, and is not gathered at the time the URL of the new listing is gathered. 15 A second database 10 (shown in Fig. I) is generated from the first 9, and this second database 10 is constantly being updated by the system as properties are sold, so that any sale listings generated by the web server 2 can be compared against this database to remove redundancies. The comparison also serves to minimise the listing of properties 20 that have been sold since the web crawler 5 last undertook a search of all Internet sites belonging to real estate agents and property listing for sale portals. A visitor 40 to the web site 3, is able to conduct a property search 42 by making queries against the database to identify a property listing. For instance, the visitor may enter a 25 query for a three bedroom, two bathroom, one garage house in a chosen locality using the interface in Fig. 1. The web server 2 will automatically provide a list of properties 44 that satisfy the query. The visitor now has a list of properties 44 that are available for sale, and uniquely that 30 list displays how each property compares to other properties in the street and provides a price range for the property. The rating and the price range may be incorrect as a consequence of incorrect data held in the databases 9 and 10. However, the visitor, who might be a prospective purchaser, 35 a selling real estate agent or the property owner are provided with a facility at the 12 interactive web site 3 to comment and submit updated information 46 using the "have your say" functionality shown in Fig. 2(a). All access to the comment section is protected by secure logins and once updated the 5 updates are recorded and made available for others to see. As updates of property attribute data are made, the processor 7 automatically recalculates the property price range and comparative street rating 48. The invention will now be described from the point of view of the selling real estate 10 agent, with reference to Fig. 5. The real estate agent 50 lists a property for sale 52 on their own web site or a third party real estate listing website. This listing is found by the web crawler 5, interrogated and relevant data extracted 54, as described above at 34. Processor 7 calculates ratings and price ranges for all properties in that street 56, as described above at 32 and 34. 15 The agent 50 can then check 58 web site 3, and if they desire, are able to login to submit additional information 60 to update the information held by the system. The concept is such that an agent 50 is able to use the web site 3 to generate both sales and listing leads, avoiding or reducing the necessity for the agent 50 to send out unsolicited 20 letters targeted to the public at large to get sale rights. Referring now to Fig. 6, the "Property Administration" interface provides a list of "Listed Properties" 66 which are all property listings the web crawler 5 has found to be related to the agent's 50 real estate agency. For a selected listing, the agent 50 can 25 submit additional information on this property. The "attribute confirmation" screen in Fig. 7 allows the agent 50 to respond to the price and rating information by confirming or updating the attribute data of this property, which may have changed due to a renovation. If the new attribute data provided by the 30 agent 50 is inconsistent with the attribute data held in the databases, the processor 7 will first check whether the agent 50 is authorised to update the data. If this is the case, the processor 7 will recalculate the first price and rating (see Fig. 1) based on that new attribute data. An owner of a property can also confirm or update the attribute data either by instructing the selling agent 50 to do so or sending a response to the system. 35 13 In addition, the agent 50 can use the web site 3 to improve advertising of that selected property on the web site 3 using the interface shown in Fig. 8. The agent 50 can provide their own comparative rating and price estimates in Step 1, authorise the system to access an advertisement of the property on a third party web site in Step 2, 5 and provide additional description or comments in Step 3. This interface can be accessed by either selecting "your say" 68 and clicking the "manage" button in Fig. 6, or by clicking "confirm" in Fig. 7. Referring to Fig. 5 again, the information provided by the agent 50 is used by processor 10 7 to recalculate ratings and price ranges 56. The recalculated ratings and prices can be seen 62 by the agent 50, and further changes can be made at any time. The agent may also leave comments 64 to explain any discrepancy between their advertised price and the price shown on web site 3. These comments will then be available to the public 70, together with the recalculated ratings and price ranges. 15 The agent 50 is also able to construct a sponsored Realtor Report using the interface shown in Fig. 9 which a user can access for free via web site 3 by clicking on the "report" button 18 in Fig. 1. The report is constructed to be as useful as possible for the consumers to ensure whenever it is available they will view it, and may contain: 20 The rating and value estimate for that rating. In essence, this is a street distribution table which allows the user to relate a price to a particular property based on it comparative quality in a street. The distribution is provided in a table format. For example, the best house on the street will have a rating better than 9.8 and the worst house in the street will have a rating of less than 1. 25 A comparative sales list and a today's estimate of the value of the property as at the time the report is produced. This estimate is generated using the actual sale price and applying to that value the suburb indices so the user can compare all the sales in the list with one another. 30 Apart from providing more information on a property, the report allows the agent 50 to collect information on visitors who are interested in the property. When a visitor signs up to the system and logs in to access a sponsored report, their contact details will be automatically collected and provided to the agent 50 (with the user's consent). This is important for the agent 50 as it gives the agent leads to both potential buyers and 35 sellers. As consumers access the report, their details will be recorded on the agent's 14 private page in Fig. 10(a). The details may also be exported to a spreadsheet for the agent's record. The agent's rating, price estimate, advertisement, comments and sponsored report will 5 then be automatically provided together with the listing on the web site 3; see Fig. 10(b). The invention will now be described from the point of view of the general public, with reference to Fig. II. 10 A member of the public visits the site and makes a query of properties for sale 72. The software returns a list of properties for sale 74 and outputs the list together with links to the property listings 76. Information published by the system might be available only to paying or registered visitors of the web site. 15 The visitor reviews the list and responds to the price and rating information concerning one of the properties 78 using the "have your say" feature 17 in Fig. 2(a). The processor 7 checks the probability that the new information is correct, for instance from prior experience with this user, and makes a determination whether or not to update the 20 web site 3. If the determination is in the affirmative, the processor 7 will recalculate the third price and rating based the visitor's own price or rating, as provided in the response. The site will then be updated with the new price and rating information. The visitor can also submit new property attribute data in a response if they do not 25 agree with the attribute data displayed on the web site 3 and provide additional comments explaining the discrepancies. However, only the owner of a property, or a realtor associated with selling or renting the property would be able to correct the attribute data in databases 9 and 10, which affects the first price and rating. 30 Another general public user scenario will now be described with reference to Fig. 12. In this case, a member of the public 70 provides details of a property 82, including a picture and details of the amenity provided by the property, or a comparative street rating, or both, using the interface in Fig. 3(a). The processor 7 uses this information to develop a price and street rating for the property 82. This information is provided back 35 to the member of the public 84 who can comment on it if they wish 86.
15 Any comments are again assessed, for instance by checking the probability the information is correct, and makes a determination whether or not to update the web site 3. If the determination is in the affirmative, the web site will be updated 88 with the new price and rating information 90. 5 Property Rental Referring now to Fig. 13, the interactive web site 3 also provides price and rating information on rental properties. This segment of the web site operates in the same manner as the segment related to properties for sale. However, instead of allowing 10 searches for properties for sale it searches properties for rent. A user can conduct a search using search functionality 119 to list out all properties for lease meeting selected criteria. Map pane 112 shows a map of a particular locality, Mosman in New South Wales in this case, and users can navigate the map to look at 15 each listing 116 in detail. Each output provides a lease rental range and comparative property listing 116, the location of which is highlighted in the map pane 112 at 115. Similarly, the interactive web site 3 attaches a street comparative rating and a rent per week range for rental properties in an area and the owner, real estate agent and public 20 have the opportunity to comment using "have your say" functionality 117. The system collects data from the public domain and agents about rental prices by address. The web site develops a rental yield for discrete areas of a city. The calculated rental yield and the calculated price for a property are both used to develop a 25 rental price range for each property it finds listed for lease. Again, a comparative street rating is developed for each property listed for lease. All "for rent" Internet sites in Australia are searched using the web crawler 5 and the information is parsed before marking the properties for lease on the database held by 30 the processor 7. Alternatively or in addition, the information may be automatically provided by the agents or property owners. The URL of the site where the lease listing was found is also attached to the database record and shown in the listing 116. Again as is provided in the for sale segment of the web server 2 a user and owner and 35 or owners real estate agent can comment using the "have your say" feature 17 in Fig. 2(a). Users and owners may also provide data about the property which is for lease and 16 the processor 7 will intemperate that data and based on the probability of accuracy update the record and recalculate the weekly dollar lease amount and the comparative rating to other properties in near proximity to it. Similarly, visitors can also order a "Realtor Report", "SMS Valuer Report" or "Right Price Report" using "report" 5 functionality 118. Although the invention has been described with reference to a particular example, it should be appreciated that it could be exemplified in many other forms and in combination with other features not mentioned above. 10 For instance, the web processor 7 may have access to specially designed software predictive models which allow it to access databases of predicted futures for all properties held in the processor's database. The predictive futures relate to predictions of capital growth and rental. As a consequence the user could make queries as follows: 15 Find properties in a street, suburb or postcode or city which meet: price characteristics attribute characteristics Comparative street rating characteristics. Find properties which are likely in the future to provide minimum return 20 characteristics as far as rent or capital growth or total return is concerned. Find properties with calculated levels of probability will provide the user with a minimum or maximum required weekly cash contribution when the property is purchased as an investment Find the best priced or bargain properties in a specified location.