AU2013202027A1 - Method and system of generating an electronic valuation report - Google Patents

Abstract

Abstract The disclosure provides a computer-implemented method of generating an electronic valuation report for a real estate property. The method comprises receiving, from a user, one or more descriptors to allow for identification of said real estate property. The method further comprises retrieving real estate data corresponding to said real estate property, the real estate data including at least a geographical region in which said real estate property is located. The method then enables the user to identify one or more comparable real estate properties based upon one or more search attributes; said search attributes being determined by said user. Real estate data for each of said comparable real estate properties is then retrieved. The user is further enabled to select one or more of said comparable real estate properties based upon at least said real estate data for said comparable real estate properties and/or said real estate data for said real estate property. The method further comprises generating an electronic valuation report for said real estate property based upon at least said selected comparable real estate properties, said electronic valuation report including at least an assessed value of said real estate property as determined by said user. 202 Receiving from a user (e.g. property valuer) one or more descriptors relating to the real 200 estate property 204 Retrieving real estate data (including geographical region) corresponding to the real estate property Enabling the user to identify one or more comparable real estate properties based on selected search attributes Retrieving real estate data corresponding to each of the comparable real estate properties 210 Enabling the user to select comparable real estate properties based upon real estate data Generating an electronic valuation report including an assessed value of the real estate property

Description

1 Method and system of generating an electronic valuation report Field of the invention [0001] The present invention relates generally to computerised information systems. In particular, the invention concerns a method and system of generating an electronic valuation report. The invention is particularly useful in relation to generating an electronic valuation report for a residential real estate property without conducting a physical or internal inspection of the real estate property, and it will therefore be convenient to describe the invention in that environment. However, it should be understood that the invention may be implemented in other environments. Background of the invention [0002] Property, such as residential real estate, is often valued by a professional or registered valuer. In fact, thousands of houses are valued each year throughout Australia. A valuation is often required by lenders or investment institutions to assist in their assessment of financing or refinancing of a real estate transaction. Generally, a registered valuer is responsible for travelling to the property to be valued and to provide a professional valuation of that property. The valuer is responsible for compiling various types of information which would factor in the valuation of the property and in creating the valuation report. For example, the valuer may consider factors such as, but not limited to, the number of bedrooms, location, living space, number of bathrooms, comparables, condition of the interior, number of garage spaces, the presence of a swimming pool, and the like. For a full market valuation, the subject property data is usually collected during the physical inspection process. [0003] There are many reasons why property is valued. Property valuations are most commonly performed as support for a real estate lending transaction. Valuers are either directly engaged by a lending institution or, alternatively, the bank places a valuation order through a valuer panel manager, such as ValEx (also known as Valuation Exchange) who then allocates the valuation request to a valuer to complete the report. [0004] Traditionally, property is valued by conducting a "full" internal and external inspection of the property being valued. With respect to residential real estate, this would involve a valuer contacting a property's resident (e.g., the current owner or a tenant) to arrange for access to the property so that an internal inspection can be conducted. Where a "full" 2 valuation is requested, if the resident is not at home during business hours, or is travelling for a period of time, there can be a significant delay from when an instructing party requests a valuation to when a valuation report is complete. [0005] In response to this, new valuation types known as restricted assessments have been developed. Principal amongst these is the "kerbside" valuation. A kerb side valuation involves a valuer taking a photo of a property from the street and making a valuation assessment once having sighted the property. In this scenario, a valuer makes an assessment using the external observation of the property and any local knowledge they may have or independent research they conduct regarding property values in the relevant area, but without actually going onto the property or inside any building or house. [0006] The shortcomings of a kerb side valuation were initially addressed by the invention titled "A Method for Performing an Asset Valuation" by Hampel et al, Australian standard patent number 2005203023, filed on 12 July 2005. The system the subject of this patent is now known at the EVR system, and has been utilised commercially in Australia for over 6 years to value over 300,000 residential properties in that time. [0007] In the EVR system, the valuation is performed by the valuer with a computer coupled to one or more property databases, without the need to physically inspect the property at all, even by way of a kerb side valuation. Thus, a valuation produced using the EVR system replaces a kerb side valuation, and uses rich verified data which the valuer can add to or remove. The workflow is audited so that the customer (i.e., the person or entity who requests the valuation) can be sure of exactly what steps were performed when valuing a property on their behalf. Thus, the combination of an audited workflow with verifiable rich data empowers a restricted assessment which does not need an inspection of the property at all. [0008] The workflow for an EVR valuation can be summarised as follows: (a) Customer creates a request for an EVR valuation. (b) Assigning the request for an EVR valuation to an appropriate valuer. (c) Granting the assigned EVR valuation request with access to appropriate data and services. (d) Where data is not available, the EVR system may cancel the valuation request or escalate to another valuation type.

3 (e) Updating the assigned EVR valuation request with appropriate data and analytic elements. (f) A valuer reviews the data enriched EVR valuation request and decides whether the request is suitable for an EVR type valuation or should be escalated to another valuation type (such as a full valuation), cancelled or completed. (g) A valuer completes the data enriched EVR valuation request. [0009] In the United States, there are now similar systems to the EVR system described above. One example is the system described in U.S. Patent Application No. US2011/0258127 titled "METHOD, COMPUTER PROGRAM PRODUCT, DEVICE, AND SYSTEM FOR CREATING AN ELECTRONIC APPRAISAL REPORT AND AUDITING SYSTEM", by Graboske et al. (In some countries, such as the United States, a valuer is called an appraiser, and a valuation is called an appraisal.) The Graboske patent application describes a system for creating an electronic appraisal form with auditing capabilities. The system described provides feedback to the appraiser during an appraisal process, based on how the appraiser's process may deviate from other appraiser's performance on similar properties or similar areas. The appraiser may also receive feedback relative to lender guidelines. For example, a lender may want all three comparable sales to be within a predetermined range of the subject property, such as one mile, otherwise a comment is required. This feedback from an auditing process, is not only based on the results as reported by other appraisal reports, but also based on the information developed through the auditing data. Accordingly, the system described in the Graboske patent application identifies what data is chosen by the appraiser to be excluded from the final appraisal. The Graboske patent application recognises that valuable information regarding the potential source errors and appraisal report arise, or perhaps bias results stream, from data that is selected by an appraiser to be excluded from the appraisal report. Thus, the Graboske patent application describes a system that offers queries to the appraiser during the appraisal process, based on audited data previously collected, so as to "second-guess" the appraiser when the appraiser opts to exclude certain information that may be available to the appraiser for including in the appraisal report. [0010] A trend in Australia and the United States is to move away from valuations performed by a human to computer generated valuations or estimated values. These are often called AVMs, or automated valuation models. For an AVM, a computer algorithm determines the estimated 4 valuation. There are many different AVM methodologies, including those described in the following patents and patent applications: (a) U.S. Patent No. 5,361,201, titled "Real Estate Appraisals Using Predictive Modeling" (b) U.S. Patent No. 6,178,406, titled "Method for Estimating the Value of Real Property" (c) U.S. Patent No. 6,748,369, titled "Method and System for Automated Property Valuation" (d) U.S. Patent No. 7,340,431, titled "Systems and Methods for Determining the Value of Assets" (e) U.S. Patent No. 7,711,574, titled "System and Method for Providing Automated Value Estimates of Properties as of a Specified Previous Time Period" (f) U.S. Patent No. 7,788,186, titled "Method and System for Automated Property Valuation Adjustment" (g) U.S. Patent No. 7,818,265, titled "System and Method for Facilitating Property Comparisons" (h) U.S. Patent No. 7,835,919, titled "Systems and Methods for Home Value Scoring" (i) U.S. Patent No. 7,930,254, titled "Property Value Estimation Using Feature Distance from Comparable Sales" [0011] However, one problem with computer generated valuations is that, generally, they do not take into account what is currently happening in the local market, and special characteristics (positive or negative) of the property and of comparable recently sold properties. In short, a computer generated valuation does not generally take into account or utilise the knowledge and expertise of a local valuer. [0012] When valuing property, it is usual to select comparable sales evidence, and then use that evidence to assist in valuing the subject property. Comparable sales evidence is evidence of recent actual arms-length sales of properties with similar characteristics and attributes in the 5 same geographic area. A computer generated valuation will usually look at or utilise comparable sales evidence. A valuer conducting a valuation will look at comparable sales evidence. [0013] In relation to valuations conducted by a valuer, one current goal is to provide a computer system for use by a valuer that automatically selects the comparable sales evidence for the valuer, and then have the valuer justify why a certain sale is not relevant, or if the valuer wishes to add a sale not on the computer generated list of comparable sales, have the valuer manually add the sale and justify the reason for the inclusion. See, for example, paragraph [0039] of the Graboske patent application (but noting that the comparable referred to here is not a comparable sale but a comparable recent valuation.) However, the valuer has no input into the initial selection of comparable sales generated by the system. [0014] Thus, there is a need for a better system that utilises a local valuer's knowledge and expertise in determining a computer assisted valuation of a property. There is a need for a more advanced EVR or desktop valuation system that assists a valuer to conduct an EVR or desktop valuation, so that the valuer can utilise the "best" comparable sales information when conducting a valuation. [0015] In this specification where a document, act or item of knowledge is referred to or discussed, this reference or discussion is not an admission that the document, act or item of knowledge or any combination thereof was at the priority date, publicly available, known to the public, part of the common general knowledge; or known to be relevant to an attempt to solve any problem with which this specification is concerned. Summary of the invention [0016] The present invention builds upon the EVR system that assists a valuer undertake a property valuation. The present invention relates to a new process for generating sales evidence, such that the sales evidence used by the valuer introduces rigour and objectivity. [0017] When completing any type of valuation report, it is industry standard practice to list in the valuation report a number of properties which have recently sold and support the valuation amount. For example, a comparable sale may be selected because it is geographically close to the property being valued and shares similar attributes such as property size, dwelling size, number of bedrooms, number of bathrooms, etc.

6 [0018] Additionally, comparable sales evidence will be chosen because the properties sold for an amount which is similar to the valuation estimate. One would expect that properties sold for a similar amount in close geographic proximity to one another and close temporal proximity with respect to the sale date would naturally share similar attributes. [0019] In certain geographic areas, or at certain times, different property attributes have a greater impact on the valuation of the property. For example, in the Brisbane inner city apartment market, the number of car spaces has a bigger impact on the valuation than the number of bathrooms. However, in the North Shore of Sydney, for houses, the number of bathrooms has a bigger impact on the valuation than the number of car spaces. In some markets, the number of bathrooms has a bigger impact on the valuation than the number of bedrooms. [0020] According to the representative embodiment of the present invention, the valuer or other person using the system can choose the attributes that will be used to determine comparable sales properties for the valuation report. For example, the valuer can use some or all of the following filters to select comparable sales properties: * Last sales date range * Last sales price range * Distance (or radius) from subject property * Number of bedrooms * Number of bathrooms * Number of car spaces * Land size * Dwelling size * Internal floor area * Type of property (house, townhouse, high rise apartment, low rise flats) [0021] The representative embodiment of the present invention then uses the attribute data from the subject property being valued, together with the filters selected by the valuer as set out 7 above, and delivers comparable sales results which can be ranked in order of compatibility by the present invention. For example, it may be determined that in some geographical regions bathrooms are more important than bedrooms when determining differences in sale price between competing properties. In other geographic regions the reverse may be true. Given this observation, when searching for comparable sales results, the present invention will rank properties based on the attributes which are most relevant in a given geographic area. [0022] According to the representative embodiment of the present invention, the user will determine filters that are used in the selection of the comparable sales results. The present invention uses the filters, and also an AVM-type algorithm, to then select the initial list of comparable sales results. The AVM-type algorithm can be, for example, a proprietary AVM algorithm such as the Rismark Hedonic algorithm or one of the algorithms described in the patents listed in paragraph [0010] above. When applying the filters selected by the user, the present invention can use each filter as an absolute requirement (e.g., the comparable properties must have 3 bedrooms) or as a weighted factor (e.g., give higher preference to 3 bedroom properties in the selection process). Optionally, the representative embodiment of the present invention can use geographic specific algorithms or geographic specific weightings when selecting comparable properties. For example, in a particular geographic area, the selection algorithm of the present invention can be configured to give a higher weighting to number of bathrooms than number of bedrooms when selecting comparable sales. [0023] Once an appropriate rank has been determined for comparable sales, the present invention will return the results to the user (e.g., the valuer). At this stage, the valuer can decide whether to include some or all of the predetermined properties or to continue searching for additional results. Depending on client criteria or product policy, a minimum number of ranked comparable sales will be needed to complete the valuation report without entering comments. For example, it may be determined (e.g., by the client) that to complete a valuation report, a valuer will need to include 5 comparable sales and 3 of these will need to be from the original comparable sales ranked and produced by the present invention. If only 2 of the originally ranked comparable sales are chosen, the valuer can be prompted to explain why the other 3 properties were not selected. [0024] When 5 comparable sales have been chosen in total, the present invention displays those properties and require the valuer to make brief remarks regarding why those specific 5 properties are regarded by the valuer as the best comparable sales. In addition to those remarks, the valuer can be required to rate whether the comparable sales are superior, inferior or 8 comparable to the subject property. This ability to rate comparable sales is useful in geographic areas where there may not be sufficient recent sales to uncover 5 comparable sales in total. In this situation, a valuer can choose recent sales which are close to comparable but can nominate them as inferior or superior and explain why. [0025] The present invention can be used as part of an EVR product, where the valuer is producing a desktop valuation using information that the valuer obtains from property databases to assist in the preparation of the valuation report. [0026] However, the ability to filter, select and rank comparable sales, together with the ability to enforce these rankings in an objective way on a valuation workflow, has application beyond an EVR or desktop valuation system. For example, comparable sales are used in many valuation types including "full" valuations and "kerb side" valuations of residential property and commercial property. Whilst ranking comparable sales will be described herein in the context of an EVR system, the present invention can be implemented on any valuation workflow which requires comparable sales that are delivered using information technology. [0027] The application to a full valuation workflow introduces objectivity into an otherwise subjective element of the workflow. Valuing property, regardless of the property type, is ultimately a subjective pursuit. It represents one individual's estimate of the true market value of a piece of property should it be sold on the date of the valuation. This selection of comparable sales is therefore useful in helping determine the most accurate valuation estimate possible, as it introduces an element of verifiable objectivity. [0028] However, using our example of a residential valuation, a valuer often knows what the contract of sale price is for a residential property they are valuing. In this scenario, the party ordering a valuation is a lender seeking to determine whether a property being offered for mortgage is worth the amount a purchaser is willing to pay. There is a temptation for valuers to cherry pick comparable sales which help support the contract for sale value. By applying the present invention to a full valuation workflow valuers help create, and are provided with, an objective list of comparable sales and must comment if they remove more than a predefined number of those ranked comparable sales. [0029] The invention is particularly useful in relation to residential real estate and it will therefore be convenient to describe the invention in that environment. However, it should be 9 understood that the invention may be implemented for other types of real estate, including commercial properties, vacant land and the like. [0030] According to an aspect of the present invention, there is provided a computer implemented method of generating an electronic valuation report for a real estate property, said method comprising: (a) receiving from a user one or more descriptors to allow for identification of said real estate property; (b) retrieving real estate data corresponding to said real estate property; said real estate data including at least a geographical region in which said real estate property is located; (c) enabling said user to identify one or more comparable real estate properties based upon one or more search attributes; said search attributes being determined by said user; (d) retrieving real estate data for each of said comparable real estate properties; (e) enabling said user to select one or more of said comparable real estate properties based upon at least said real estate data for said comparable real estate properties and/or said real estate data for said real estate property; and (f) generating an electronic valuation report for said real estate property based upon at least said selected comparable real estate properties, said electronic valuation report including at least an assessed value of said real estate property as determined by said user. [0031] According to a further aspect of the present invention, there is provided a computer implemented method of generating an electronic valuation report for a real estate property, said method comprising: (a) means for receiving from a user one or more descriptors to allow for identification of said real estate property; (b) means for retrieving real estate data corresponding to said real estate property; said real estate data including at least a geographical region in which said real estate property is located; 10 (c) means for enabling said user to identify one or more comparable real estate properties based upon one or more search attributes; said search attributes being determined by said user; (d) means for retrieving real estate data for each of said comparable real estate properties; (e) means for enabling said user to select one or more of said comparable real estate properties based upon at least said real estate data for said comparable real estate properties and/or said real estate data for said real estate property; and (f) means for generating an electronic valuation report for said real estate property based upon at least said selected comparable real estate properties, said electronic valuation report including at least an assessed value of said real estate property as determined by said user. [0032] According to a still further aspect of the present invention, there is provided a computer-implemented system of generating an electronic valuation report for a real estate property, said system comprising one or more computers including: at least one processor; an interface between said processor and a data network; a database for containing information relating to said real estate property; and at least one storage medium operatively coupled to said processor, said storage medium containing program instructions for execution by said processor, said program instructions causing said processor to execute the steps of: (a) receiving from a user one or more descriptors to allow for identification of said real estate property; (b) retrieving from said database real estate data corresponding to said real estate property; said real estate data including at least a geographical region in which said real estate property is located; (c) enabling said user to identify one or more comparable real estate properties based upon one or more search attributes; said search attributes being determined by said user; 11 (d) retrieving from said database real estate data for each of said comparable real estate properties; (e) enabling said user to select one or more of said comparable real estate properties based upon at least said real estate data for said comparable real estate properties and/or said real estate data for said real estate property; and (f) storing in said database information relating to said real estate property, said comparable real estate properties, and/or said rank of said comparable real estate properties relative to said real estate property; and (g) generating an electronic valuation report for said real estate property based upon at least said selected comparable real estate properties, said electronic valuation report including at least an assessed value of said real estate property as determined by said user. [0033] According to a still further aspect of the present invention, there is provided a tangible computer-readable medium having computer-executable instructions stored thereon for performing a method of generating an electronic valuation report for a real estate property, said method comprising: (a) receiving from a user one or more descriptors to allow for identification of said real estate property; (b) retrieving real estate data corresponding to said real estate property; said real estate data including at least a geographical region in which said real estate property is located; (c) enabling said user to identify one or more comparable real estate properties based upon one or more search attributes; said search attributes being determined by said user; (d) retrieving real estate data for each of said comparable real estate properties; (e) enabling said user to select one or more of said comparable real estate properties based upon at least said real estate data for said comparable real estate properties and/or said real estate data for said real estate property; and (f) generating an electronic valuation report for said real estate property based upon at least said selected comparable real estate properties, said electronic valuation report 12 including at least an assessed value of said real estate property as determined by said user. [0034] According to a still further aspect of the present invention, there is provided a computer-implemented method of generating an electronic valuation report for a real estate property, said method comprising: (a) receiving an address of the real estate property; (b) receiving, from a property information database, information regarding property features for the real estate property; (c) receiving one or more filters to determine comparable sales of other properties, said filters including attributes of the real estate property; (d) using the address of the real estate property and the one or more filters, generating a list of comparable sales, said list including for each comparable sale a property address, sale date, sales price and property attributes; (e) enabling a user to select one or more comparable sales from said generated list; (f) enabling a user to input a valuation of the real estate property; and (g) generating a valuation report, said valuation report including the valuation of the real estate property and the selected list of comparable sales. [0035] According to a still further aspect of the present invention, there is provided a computer-implemented method of generating an electronic valuation report for a real estate property, said method comprising: (a) receiving an address of the real estate property; (b) receiving, from a property information database, information regarding property features for the real estate property; (c) receiving one or more filters from a user, said filters to determine comparable sales of other properties and including attributes of the real estate property; (d) using the address of the real estate property and the one or more filters, generating a list of comparable sales, said list including for each comparable sale a property address, sale date, sales price and property attributes, wherein the filters are used to weight attributes to determine the most relevant comparable sales; 13 (e) enabling the user to select one or more comparable sales from said generated list; (f) enabling the user to add one or more comparable sales not on the generated list of comparable sales to the list of comparable sales; (g) enabling a user to input a valuation of the real estate property; and (h) generating a valuation report, said valuation report including the valuation of the house and the selected list of comparable sales. [0036] The real estate property may be a house. Brief Description of the Drawings [0037] Embodiments of the present invention will now be described with reference to the accompanying drawings. These embodiments are given by way of illustration only and other embodiments of the invention are also possible. Consequently, the particularity of the accompanying drawings is not to be understood as superseding the generality of the preceding description. In the drawings: [0038] Figure 1 shows a schematic block diagram of a system generating an electronic valuation report for a real estate property in accordance with a representative embodiment of the present invention; [0039] Figure 2 is a flow chart illustrating a preferred method of generating an electronic valuation report for a real estate property in accordance with the invention. [0040] Figures 3, 4A, 4B, 4C, 5, 6A, 6B, 6C, 7 and 8 represent the EVR workflows from the perspective of a valuer using the EVR product. The EVR product displays the workflow as 6 discrete tabs in the user interface. These are: (a) an overview of the EVR valuation request; (b) verification of the data provided to the valuer with the EVR valuation request (the valuer can access property information and listings data through widgets and can then determine whether to add the data to the EVR valuation request); (c) escalation or cancellation of the EVR valuation request; 14 (d) the selection of comparable sales evidence to help determine an accurate valuation estimate; (e) an assessment of any known market or property risks; and (f) completion of the valuation estimate and submission of the final EVR valuation report. Description of Representative Embodiments [0041] Representative embodiments of the present invention relate to a computer implemented method and system of generating an electronic valuation report for a real estate property. The invention is particularly useful in relation to generating an electronic valuation report for a residential real estate property without conducting a physical or internal inspection of the real estate property, and it will therefore be convenient to describe the invention in that environment. However, it should be understood that the invention is not limited to this preferred embodiment, and may be implemented in other environments. [0042] Figure 1 illustrates an exemplary system 100 in which preferred embodiments of the invention may be implemented. The system includes a server 102 and at least one user terminal 104, both of which are connected to a network 106, which may be, for example, the Internet. Also connected to the network 106 are a plurality of user terminals and/or servers, e.g. 108, 110. It will be appreciated that Figure 1 depicts the system 100 schematically only, and is not intended to limit the technology employed in the servers, user terminals and/or communication links. The user terminals in particular may be wired or wireless devices, and their connections to the network may utilize various technologies and bandwidths. For example, applicable user terminals include (without limitation): PC's with wired (e.g. LAN, cable, ADSL, dial-up) or wireless (e.g. WLAN, cellular) connections; and wireless portable/handheld devices such as PDA's, Apple iPads, or mobile/cellular telephones and smartphones. These devices also may include input means, such as a mouse and keyboard, stylus or other pointing device or system, or a touch screen, to enable the users to make selections and input data. The protocols and interfaces between the user terminals and the servers may also vary according to available technologies, and include (again without limitation): wired TCP/IP (Internet) protocols; GPRS, WAP and/or 3G protocols (for handheld/cellular devices); Short Message Service (SMS) messaging for digital mobile/cellular devices; and/or proprietary communications protocols.

15 [0043] The server 102 includes at least one processor 112 as well as a database 114, which would typically be stored on a secondary storage device of the server 102, such as one or more hard disk drives. Server 102 further includes at least one storage medium 116, typically being a suitable type of memory, such as random access memory, for containing program instructions and transient data related to the operation of the valuation system as well as other necessary functions of the server 102. In particular, memory 116 contains a body of program instructions 118 implementing the method and system in accordance with preferred embodiments of the invention. The body of program instructions 118 includes instructions for generating an electronic valuation report for a real estate property, the operation of which will be described hereafter. [0044] It should be appreciated that the hardware used to implement the method of the invention may be conventional in nature or specifically designed for the purpose. The hardware structure shown in Figure 1 is merely one possible embodiment and any other suitable structure may be utilised. [0045] The present invention builds upon the EVR system that assists a valuer undertake a property valuation. The present invention relates to a new process for generating sales evidence, such the sales evidence used by the valuer has been developed which introduces rigour and objectivity. [0046] As discussed above, when completing any type of valuation report, it is industry standard practice to list in the valuation report a number of properties which have recently sold and support the valuation amount. For example, a comparable sale may be selected because it is geographically close to the property being valued and shares similar attributes such as property size, dwelling size, number of bedrooms, a number of bathrooms, etc. [0047] Additionally, comparable sales evidence will be chosen because the properties sold for an amount which is similar to the valuation estimate. One would expect that properties sold for a similar amount in close geographic proximity to one another and close temporal proximity with respect to the sale date would naturally share similar attributes. [0048] In accordance with a representative embodiment of the present invention, the method and system of generating an electronic valuation report for a real estate property requires the analysis of real estate data, which is available for the real estate property and also comparable real estate properties, in order to generate an accurate electronic valuation report. Such data is 16 preferably stored within a centralised database 114. In order for the electronic valuation report to be accurate, it should be understood that such a database must contain a suitable volume and spread of data in order to produce statistically significant results. It will be appreciated by those skilled in the art that access to such databases is commercially available (e.g. RP Data), and that the present invention is not intended to include the development of such a database. [0049] The database 114 contains historical real estate data and sales data for real estate properties. In order to ensure the currency and accuracy of the system for generating electronic valuation reports, it is expected that the database 114 would be regularly updated to include data from recent property sales. Furthermore, it is preferable that the database 114 will contain at least 12 months of relevant sales data so that any seasonal effects can be identified. [0050] Figure 2 is a flow chart 200 which illustrates a preferred method of generating an electronic valuation report for a real estate property in accordance with the present invention. In line with this general method, it is intended that all of the steps of this method can be performed without a physical or internal inspection of a given real estate property. However, it should be understood that the method according to the present invention could also be performed by reference to photographs or images of the real estate property. [0051] At step 202, the method includes receiving from a user (e.g. a property valuer), one or more descriptors relating to the vendor's property. In a representative embodiment of the present invention, the descriptors include at least the address of the real estate property to enable the identification of the real estate property within the database. Depending on the way in which the electronic valuation report has been commissioned, the descriptors may be provided by either the property valuer, or by an external third party (e.g. a bank or financial institution). [0052] At step 204, the method involves retrieving, from the database 114, real estate data corresponding to the real estate property being valued. As an initial step, the method uses the descriptors (i.e. the address of the real estate property) to query the database 114 and retrieve the stored real estate data (i.e. property attributes) for the real estate property being valued. The database will preferably contain the various property attributes for the real estate property including, for example, the number of bedrooms, the number of bathrooms, the number of car spaces, the land size, and any available imagery (e.g. street-side and oblique photography, map data, zoning data). In addition, the real estate data will include the geographical region in which the real estate property is located, such as the street, suburb, and/or state in which the property is located, depending on the level of specificity required for the electronic valuation.

17 [0053] Once this real estate data has been retrieved from the database 114, it is presented to the user (at the user terminal) as preliminary overview screen 300, such as illustrated in Figure 3 of the drawings. In a preferred embodiment of the present invention, and in addition to the real estate data 302 displayed on the preliminary overview screen 300, the user may also be presented with various valuation conditions and criteria. Depending on the nature and purpose of the valuation, the user may be presented with specific customer contact conditions 304 that specify the conditions under which the user may contact the vendor or lessee of the real estate property, as part of the valuation process. Furthermore, the user may also be presented with valuation escalation conditions 306 that specify the conditions under which the electronic valuation may be escalated to either a drive-by valuation or a short-form valuation of the real estate property. Finally, the user may also be presented with valuation cancellation conditions 308 that specify the conditions under which the electronic valuation of the real estate property should be cancelled (i.e. not proceed as an EVR). Having regard to each of the conditions (304, 306, 308), the user may then choose (if appropriate) to commence generation of the electronic valuation report by choosing to start the assessment 310. [0054] The generation of the electronic valuation report begins by presenting the user with a data verification screen 400, which includes various real estate data corresponding to the real estate property, such as shown in Figure 4A of the drawings. The real estate data presented to the user at screen 400 is drawn from the database 114, and presented to the user for verification purposes. This screen 400 displays information such as customer information 402, lender provided information 404 (e.g. an estimated market value of the real estate property, and the purpose of the loan sought), title details 406 for the real estate property, property summary details 408 (which provides a list of property attributes in greater detail), and any special features 410 (including services and/or external improvements) that the property may have such as, for example, being close to amenities, having a septic system, and having a swimming pool. The user is required to review the information presented at screen 400 and verify the real estate data to ensure an accurate valuation of the property. In addition, the user has the option to edit any of the real estate data that they consider to be inaccurate or incorrect. [0055] In a representative embodiment of the present invention, the user may also wish to view additional real estate data corresponding to the real estate property. The presentation of this data to the user may include a detailed property information screen 500, such as shown in Figure 4B of the drawings, including addition data such as the sales history 502 for the real estate property. Alternatively, or in addition, this data may include a market listings screen 600 18 that displays the sales market history 602 and/or the rental market history 604 for the real estate property. In addition to verifying the real estate data presented on these further screens (500, 600), this further sales data may provide the user with the necessary historical data required to conduct an accurate valuation of the property. Such data may be particularly useful where the value of real estate properties is affected by seasonal or cyclical variations/trends. [0056] Once the user is satisfied that the real estate data contained in the database 114 accurately represents the real estate property being valued, they can then choose to proceed with the electronic valuation of the property. In a representative embodiment of the present invention, the user may then be presented with a valuation escalation and cancellation screen 700, which repeats the conditions presented on the preliminary overview screen 300, such as shown in Figure 5 of the drawings. However, at this point, if the user identifies that one of the escalation conditions 702 or cancellation conditions 704 has been fulfilled, then the user has the option to either escalate the valuation (to either a drive-by or short form valuation), or to cancel the valuation. Should either one of these options be selected by the user, the generation of the electronic valuation report is escalated to a drive-by or terminated and sent to a short form, as it is not suitable for the given real estate property. [0057] If, at screen 700, the user identifies that none of the escalation conditions 702 or cancellation conditions 704 has been fulfilled, then they can proceed with the next step of the electronic valuation. At step 206, the method enables the user to identify one or more comparable real estate properties in order to provide sales evidence to support the final valuation of the real estate property. The user is presented with a sales evidence identification screen 800, which allows the user to search for comparable real estate properties based upon either a filtered search 802, or an exact address search 804 (in the event that the user is directly aware of relevant comparable real estate properties). Using the filtered search 802, the user is given the option to locate comparable real estate properties by various search attributes 810. These search attributes 810 include, for example, a sales date range in which comparable real estate properties were sold, a sales price range for which comparable real estate properties were sold, a distance from the real estate property being valued, the number of bedrooms, the number of bathrooms, the number of car spaces, a land size range for the comparable real estate properties, and a property type classification (e.g. house, apartment, unit, villa, and land). In a representative embodiment of the present invention, the user (e.g. a property valuer) will have specific knowledge and experience of property sales within at least the geographical region in which the real estate property is located. Based upon this knowledge and experience, it is intended that the user will 19 be in a position to select the most significant search attributes, and therefore identify (from within the database 114) the most comparable real estate properties within that geographical region. In doing so, it is expected that the user will be able to generate a valuation of the real estate property that most accurately reflects the value of the property and the state of the real estate market. [0058] After entering the required search attributes 810 at screen 800, the user can run the search to locate the comparable real estate properties in the database 114. At step 208, the method performs the search requested by the user and retrieves the real estate data corresponding to each of the comparable real estate properties that match the selected search attributes 810. As with the real estate data for the real estate property, the real estate data for the comparable real estate properties includes very similar property attributes to enable a comparison of the real estate property with the comparable real estate properties. The real estate data 812 for each of the comparable real estate properties is then displayed to the user at screen 800. Once the user is satisfied with the comparable real estate properties identified by the search (and/or located by specifying an exact address), they can proceed with the next step of the electronic valuation. [0059] At step 210, the method requires the user to select a certain number of comparable real estate properties to use as sales evidence to support the final valuation of the real estate property. The user is then presented with a sales evidence selection screen 900 which, as with the sales evidence identification screen 800, presents the user with the real estate data for the comparable real estate properties with the most relevant properties listed first. Depending on the number of comparable real estate properties required to support the valuation (e.g. this can vary from between about 3 to about 5 comparable real estate properties depending on the purpose of the valuation), the number of comparable real estate properties presented to the user may vary. At this point, the user has the option to review the comparable real estate properties and select 902 those properties that are likely to support (i.e. in the form of sales evidence) the final valuation of the real estate property (as determined by the user). Once the user has selected at least a minimum number of required comparable real estate properties (i.e. a number required depending on the nature of the valuation being conducted), they can proceed to the next stage in the generation of the electronic valuation report. [0060] In a representative embodiment of the present invention, the user is then presented with a sales evidence ranking screen 1000, which presents the user with the real estate data for each of the selected comparable real estate properties. In addition to this real estate data, the user is required to rank each of the selected comparable real estate properties as being either 20 'superior', 'comparable', or 'inferior' to the real estate property being valued. Furthermore, the user may also have the option (or be required) to provide comments 1004 to justify the assigned ranking of each of the selected comparable real estate properties. Even at this stage of the method, the user can choose to remove 1006 any comparable real estate properties that are no longer considered to support the final valuation of the real estate property being valued. However, if the recommended comparable sales are not chosen by the valuer, the system may require the valuer to provide a comment before proceeding. [0061] After finalising the selection of the comparable real estate properties, in support of the final valuation of the real estate property, the user may be presented with a risk analysis screen 1100. This screen 1100 requires the user to complete a risk analysis for the real estate property and includes an assessment of the overall risk 1102 (including, for example, factors such as bushfire risk, coastal erosion, flight path, easements, heritage issues etc.), property risk rating 1104 (including, for example, a risk rating for factors such as location, land, environmental issues, and improvements), and market risk rating 1106 (including, for example, a risk rating for factors such a market volatility, local economic impact, and market segment conditions). Once this risk analysis has been completed, the user can then proceed to the generation of the electronic valuation report. [0062] At step 212, the method allows the user to generate a draft electronic valuation report for the real estate property being valued. An example of such a draft electronic valuation report 1200 is shown at Figure 8 of the drawings. In a representative embodiment of the present invention, the report 1200 provides a property summary 1202 including the relevant real estate data for the real estate property being valued (which may also include photographs of the real estate property), a sales evidence summary 1204 including the real estate data for the selected comparable real estate properties (which may also include photographs of the comparable properties), a risk analysis summary 1206 including one or more of the risk analysis, property risk rating and market risk rating, and the assessment value summary 1208 including an assessed value 1210 of the of real estate property and any relevant comments 1214 regarding the assessed valuation. In relation to the assessment value summary 1208, it is expected that at least the assessed value 1210 of the real estate property will be entered by the user. This assessed value 1210 will preferably be supported by the sales evidence summary 1204, and reflect an accurate valuation for the real estate property.

21 [0063] Once the user is satisfied with the content of the draft electronic valuation report 1200, they can proceed to submit 1220 the valuation, which may involve, for example, transmitting the report to the customer that requested the valuation of the real estate property. [0064] The word 'comprising', and forms of the word 'comprising', when used in this specification is taken to specify the presence of stated features, integers, steps or components but does not preclude the presence or addition of one or more other features, integers, steps, components or groups thereof. [0065] As the present invention may be embodied in several forms without departing from the essential characteristics of the invention, it should be understood that the above described embodiments should not be considered to limit the present invention but rather should be construed broadly. Various modifications, improvements and equivalent arrangements will be readily apparent to those skilled in the art, and are intended to be included within the spirit and scope of the invention.

Claims (26)

1. A computer-implemented method of generating an electronic valuation report for a real estate property, said method comprising: (a) receiving from a user one or more descriptors to allow for identification of said real estate property; (b) retrieving real estate data corresponding to said real estate property; said real estate data including at least a geographical region in which said real estate property is located; (c) enabling said user to identify one or more comparable real estate properties based upon one or more search attributes; said search attributes being determined by said user; (d) retrieving real estate data for each of said comparable real estate properties; (e) enabling said user to select one or more of said comparable real estate properties based upon at least said real estate data for said comparable real estate properties and/or said real estate data for said real estate property; and (f) generating an electronic valuation report for said real estate property based upon at least said selected comparable real estate properties, said electronic valuation report including at least an assessed value of said real estate property as determined by said user.

2. The method according to claim 1, wherein said one or more descriptors include at least an address of said real estate property.

3. The method according to either claim 1 or claim 2, wherein said search attributes are determined by said user based upon one or more of: (a) an assessment by said user of said real estate data corresponding to said real estate property; and (b) an assessment by said user of the search attributes considered most significant within said geographical region.

4. The method according to any one of the preceding claims, wherein step (e) includes the further step of enabling said user to rank each of said selected comparable real estate properties relative to said real estate property based upon at least said real estate data for said selected comparable real estate properties and/or said real estate data for said real estate property. 23

5. The method according to any one of the preceding claims, wherein step (b) includes the further step of requiring said user to validate said real estate data corresponding to said real estate property.

6. The method according to claim any one of the preceding claims, wherein step (e) includes the preliminary step of enabling said user to discard real estate data corresponding to said comparable real estate properties that do not meet with a predetermined selection criteria.

7. The method according to any one of the preceding claims, wherein step (c) includes the further step of enabling said user to identify one or more comparable real estate properties by specifying a location of said comparable real estate properties.

8. The method according to any one of the preceding claims, wherein said geographical region includes one or more of: (a) a street in which the real estate property is located; (b) a suburb in which the real estate property is located; and (c) a state in which the real estate property is located.

9. The method according to any one of the preceding claims, wherein said search attributes include one or more of: (a) a date range within which comparable real estate properties were sold; (b) a sales price range; (c) a specified distance from said real estate property; (d) a specified number of bedrooms; (e) a specified number of bathrooms; (f) a specified number of car spaces; (g) a property type classification; (h) a land size range; and (i) dwelling size range. 24

10. The method according to any one of the preceding claims, wherein said sales trend data includes a perceived ranking of property attributes as they relate to said geographical region, said ranking being based upon at least a perceived influence of each said property attribute upon the value of said real estate property.

11. The method according to any one of the preceding claims, wherein step (e) further includes enabling said user to rank each of said selected comparable real estate properties as being superior, comparable, or inferior to said real estate property.

12. The method according to claim 11, wherein step (e) includes the further step of requiring said user to input comments explaining the ranking assigned to each of said real estate properties.

13. The method according to any one of the preceding claims, further including presenting to said user termination criteria that if satisfied will require the electronic valuation report to be generated by alternative means.

14. The method according to any one of the preceding claims, wherein step (f) includes the preliminary step of requiring said user to complete a risk analysis for said real estate property prior to generating said electronic valuation report.

15. The method according to claim 14, wherein said risk analysis includes one or more of the following: (a) identification of specific risk factors; (b) assessment and rating of property risk for said real estate property; and (c) assessment of market risk.

16. The method according to any one of the preceding claims, wherein said electronic valuation report further includes an assessed value of said real estate property.

17. A computer-implemented method of generating an electronic valuation report for a real estate property, said method comprising: (a) receiving an address of the real estate property; (b) receiving, from a property information database, information regarding property features for the real estate property; 25 (c) receiving one or more filters to determine comparable sales of other properties, said filters including attributes of the real estate property; (d) using the address of the real estate property and the one or more filters, generating a list of comparable sales, said list including for each comparable sale a property address, sale date, sales price and property attributes; (e) enabling a user to select one or more comparable sales from said generated list; (f) enabling a user to input a valuation of the real estate property; and (g) generating a valuation report, said valuation report including the valuation of the real estate property and the selected list of comparable sales.

18. The method according to claim 17, wherein step (b) further comprises receiving a past sales price for the real estate property.

19. A computer-implemented method of generating an electronic valuation report for a real estate property, said method comprising: (a) receiving an address of the real estate property; (b) receiving, from a property information database, information regarding property features for the real estate property; (c) receiving one or more filters from a user, said filters to determine comparable sales of other properties and including attributes of the real estate property; (d) using the address of the real estate property and the one or more filters, generating a list of comparable sales, said list including for each comparable sale a property address, sale date, sales price and property attributes, wherein the filters are used to weight attributes to determine the most relevant comparable sales; (e) enabling the user to select one or more comparable sales from said generated list; (f) enabling the user to add one or more comparable sales not on the generated list of comparable sales to the list of comparable sales; (g) enabling a user to input a valuation of the real estate property; and (h) generating a valuation report, said valuation report including the valuation of the real estate property and the selected list of comparable sales. 26

20. The method according to claim 19, wherein step (e) includes the step of requiring the user to input reasons as to why a comparable sale is not selected.

21. The method according to claim 19 or 20, wherein step (e) includes the step of requiring the user to input reasons as to why a comparable sale is selected.

22. The method according to any one of claims 19 to 21, wherein step (f) includes the step of requiring the user to input reasons as to why a comparable sale was added.

23. The method according to any preceding claim, wherein the real estate property is a house.

24. A computer-implemented system of generating an electronic valuation report for a real estate property, said method comprising: (a) means for receiving from a user one or more descriptors to allow for identification of said real estate property; (b) means for retrieving real estate data corresponding to said real estate property; said real estate data including at least a geographical region in which said real estate property is located; (c) means for enabling said user to identify one or more comparable real estate properties based upon one or more search attributes; said search attributes being determined by said user; (d) means for retrieving real estate data for each of said comparable real estate properties; (e) means for enabling said user to select one or more of said comparable real estate properties based upon at least said real estate data for said comparable real estate properties and/or said real estate data for said real estate property; and (f) means for generating an electronic valuation report for said real estate property based upon at least said selected comparable real estate properties, said electronic valuation report including at least an assessed value of said real estate property as determined by said user.

25. A computer-implemented system of generating an electronic valuation report for a real estate property, said system comprising one or more computers including: at least one processor; an interface between said processor and a data network; 27 a database for containing information relating to said real estate property; and at least one storage medium operatively coupled to said processor, said storage medium containing program instructions for execution by said processor, said program instructions causing said processor to execute the method of any one of claims 1 to 23.

26. A tangible computer-readable medium having computer-executable instructions stored thereon for performing a method of generating an electronic valuation report for a real estate property according to any one of claims 1 to 23.