"A Beginner's Guide to Automated Valuation Modeling (AVM)" is a practical and comprehensive book that delves into the intricacies of creating an AVM. Authored by Sid Som, the book comprises ten detailed chapters that meticulously guide readers through the essential processes of developing an AVM using actual sales data from diverse counties.
The book begins by explaining the different types of variables, such as continuous, binary, discrete, and ratio, and demonstrates how to encode them effectively. Throughout the chapters, readers will learn how to derive a representative sales sample, adjust sale prices for time, address fixed and location surfaces, manage correlation and multicollinearity, conduct regression modeling and residual analysis, identify and remove outliers using Z-scores, fine-tune the model, analyze sales ratios, apply the model to holdout samples and the population, and more. Each chapter is richly supplemented with data tables, statistical outputs, summaries, charts, and graphs to enhance understanding of the concepts discussed. To further aid readers, Excel steps and SAS codes are provided at the end of each chapter for practical implementation.
"A Beginner's Guide to Automated Valuation Modeling (AVM)" is a comprehensive resource that equips individuals with the necessary tools to master AVM, covering every aspect thoroughly. The author's meticulous and structured approach ensures readers are well-prepared to navigate its complexities. This book serves as a roadmap, offering a blend of theoretical insights and practical guidance, making the audience feel knowledgeable and confident about AVM techniques.
The book is not just a theoretical exploration of AVM but a practical guide that engages readers with real-world examples. The detailed illustrations and comprehensive step-by-step approach make this book indispensable for anyone venturing into automated valuation modeling. By presenting real-world scenarios, the author ensures that readers not only learn theory but also gain practical insights that can be applied immediately.
