Lightstone transforming property valuations through AI

Property valuation has always been a laborious science. However, the 2019 introduction of AI into the property valuation process marked a huge step forward for Lightstone, who can now process tons of data quickly and accurately.

The company’s AI journey began back in 2006 when it set out to revolutionise property valuations in South Africa. Lightstone introduced Automated Valuation Models (AVMs) to the mortgage market, making the property valuation process more efficient and accurate than ever before. The goal was clear: to develop cutting-edge AVMs that could estimate property values in the residential market.

To achieve this, the team started by collecting vast amounts of property data. Think of it as assembling puzzle pieces. They needed information about property sizes, locations, sale history, and much more. This data became the building blocks of the Lightstone valuation models.

To this day, one of the most important processes is to make sure the data is clean and tidy. This involves filtering out irrelevant information and ensuring that what remains is accurate. A clean dataset is like a clear blueprint for AI models.

In 2019 Lightstone harnessed the power of AI and machine learning to make sense of all that data, launching its AI Automated Valuation Model (AiAvm). Picture AI as a detective, searching for patterns and connections among the property details.

The company used advanced techniques like neural networks (NNs), convolutional neural networks (CNNs), and gradient boosting to teach its AI how to estimate property values.

And the AI just keeps on learning!

“We update it regularly, like a student attending classes to get better. The more data it encounters, the sharper its estimating skills become,” says Lightstone’s Hayley Ivins Downes. “It’s like a sports enthusiast who keeps improving their game with each practice session.”

One of Lightstone AI’s superpowers is its ability to provide daily estimate revisions. It keeps an eye on the property market 24/7, ensuring that the information it provides is as current as possible. This real-time accuracy is invaluable to Lightstone clients.

AI consistently delivers highly accurate property value estimates. Moreover, it can handle a wide range of properties, ensuring that clients receive the most precise valuations, whether it’s for a cosy suburban home or a bustling commercial property.

“Our journey has been marked by innovation, dedication, and the relentless pursuit of excellence,” says Hayley. “We’re not just changing the way property valuations are done; we’re leading the way with AI-driven solutions that empower banks, insurance companies, property investors and real estate professionals to make informed decisions.”

So, whether you’re a homeowner curious about your property’s value or a business owner exploring commercial real estate, remember that Lightstone is here to provide you with the most accurate and up-to-date property valuations, all thanks to the power of AI.

For more information on Lightstone’s products and services, visit https://www.lightstoneproperty.co.za/.