Leveraging supplementary modalities in automated real estate valuation using comparative judgments and deep learning

Abstract

Purpose: In this study the authors aim to outline new ways of information extraction for automated valuation models, which in turn would help to increase transparency in valuation procedures and thus contribute to more reliable statements about the value of real estate. Design/methodology/approach: The authors hypothesize that empirical error in the interpretation and qualitative assessment of visual content can be minimized by collating the assessments of multiple individuals and through use of repeated trials. Motivated by this problem, the authors developed an experimental approach for semi-automatic extraction of qualitative real estate metadata based on Comparative Judgments and Deep Learning. The authors evaluate the feasibility of our approach with the help of Hedonic Models. Findings: The results show that the collated assessments of qualitative features of interior images show a notable effect on the price models and thus over potential for further research within this paradigm. Originality/value: To the best of the authors’ knowledge, this is the first approach that combines and collates the subjective ratings of visual features and deep learning for real estate use cases.