Learning Real Estate Automated Valuation Models from Heterogeneous Data Sources

Bergadano, Francesco, Bertilone, Roberto, Paolotti, Daniela, Ruffo, Giancarlo

arXiv.org Machine Learning 

Real estate appraisal is a complex and important task, that can be made more precise and faster with the help of automated valuation tools. Usually the value of some property is determined by taking into account both structural and geographical characteristics. However, while geographical information is easily found, obtaining significant structural information requires the intervention of a real estate expert, a professional appraiser. In this paper we propose a Web data acquisition methodology, and a Machine Learning model, that can be used to automatically evaluate real estate properties. This method uses data from previous appraisal documents, from the advertised prices of similar properties found via Web crawling, and from open data describing the characteristics of a corresponding geographical area. We describe a case study, applicable to the whole Italian territory, and initially trained on a data set of individual homes located in the city of Turin, and analyze prediction and practical applicability.