Chat
Chat with Sales Hours: Monday-Friday 8:30 a.m. - 4:30 p.m. (CST)
Contact Sales
Call Sales Toll-Free 1-(866) 774-3282 Hours: Monday-Friday 7 a.m. - 5 p.m. (CST)
Product Login
Product Log-in
Product Support
Product Support
Email Sales
Contact Sales
After Hours
  • Support
  • Sign In Sign In
  • AUS NZ UK
CoreLogic - Home
  • Solutions
    view solutions by:

    Data Solutions

    • Lead Generation
    • Property Data
    • Location Intelligence

    Real Estate

    • Multiple Listing Enterprise
    • Agent & Broker

    Mortgage

    • Origination
    • Servicing
    • Appraisal
    • Commercial Property Tax

    Insurance

    • Hazard Risk
    • Catastrophe Risk Management
    • Risk Evaluation
    • Underwriting Automation
    • Weather
    • Claims Automation
    • Restoration
    • INTRCONNECT

    Mortgage Lenders

    • Origination

    Mortgage Servicers

    • Residential Property Tax
    • Default & Loss Mitigation
    • Portfolio Insight & Monitoring

    Mortgage Appraisers

    • Appraisal

    Real Estate Agents & Brokers

    • Agents & Brokers

    Real Estate MLS

    • Multiple Listing Enterprises

    Commercial Real Estate Owners

    • Commercial Property Tax

    Marketing Departments

    • Property Data

    Insurance Underwriters

    • Risk Evaluation
    • Underwriting Automation
    • Hazard Risk
    • Catastrophe Risk Management

    Insurance Risk Managers

    • Risk Evaluation
    • Hazard Risk
    • Catastrophe Risk Management

    Insurance Claims

    • Claims Automation
    • Restoration Contractors
    • Weather Verification

    Construction Contractors

    • Restoration Contractors

    General

    • Location Intelligence
    • Lead Generation
    • Data Solutions
  • Resources

    Reports

    • Climate Change
    • Construction Cost Update
    • Construction Insights
    • Home Price Insights
    • Homeowner Equity Insights
    • Loan Performance Insight
    • Mortgage Fraud
    • Property Tax Delinquency
    • Single-Family Rent Index

    Insight Blogs

    • Hazard HQ
    • Office of Chief Economist
    • Affordable Housing
    • Homebuying
    • Insurance
    • Other Articles

    More Resources

    • Events
    • Case Studies
    • White Papers
    • Podcasts
    • Quick Takes
  • Company
    • About
    • Leadership
    • Newsroom
    • Contact
    • Careers
  • Search
CoreLogic - Home
  • Solutions
  • Resources
  • Company

    • About
    • Leadership
    • Newsroom
    • Contact
    • Careers
  • Accounts

    • Products Sign-in
  • Contact

    • Sales Contact
    • Product Support
  • Regions

    • Australia
    • New Zealand
    • United Kingdom
  • Social

    • Facebook
    • Instagram
    • Linkedin
    • Twitter
    • Youtube
Solutions
VIEW BY:
  • Data Solutions

    • Lead Generation
    • Property Data
    • Location Intelligence
  • Real Estate

    • Multiple Listing Enterprise
    • Agent & Broker
  • Mortgage

    • Origination
    • Servicing
    • Appraisal
    • Commercial Property Tax
  • Insurance

    • Hazard Risk
    • Catastrophe Risk Management
    • Risk Evaluation
    • Underwriting Automation
    • Weather
    • Claims Automation
    • Restoration
    • INTRCONNECT
  • Mortgage Lenders

    • Origination
  • Mortgage Servicers

    • Residential Property Tax
    • Default & Loss Mitigation
    • Portfolio Insight & Monitoring
  • Mortgage Appraisers

    • Appraisal
  • Real Estate Agents & Brokers

    • Agents & Brokers
  • Real Estate MLS

    • Multiple Listing Enterprises
  • Commercial Real Estate Owners

    • Commercial Property Tax
  • Marketing Departments

    • Property Data
  • Insurance Underwriters

    • Risk Evaluation
    • Underwriting Automation
    • Hazard Risk
    • Catastrophe Risk Management
  • Insurance Risk Managers

    • Risk Evaluation
    • Hazard Risk
    • Catastrophe Risk Management
  • Insurance Claims

    • Claims Automation
    • Restoration Contractors
    • Weather Verification
  • Construction Contractors

    • Restoration Contractors
  • General

    • Location Intelligence
    • Lead Generation
    • Data Solutions
Resources
  • Reports

    • Climate Change
    • Construction Cost Update
    • Construction Insights
    • Home Price Insights
    • Homeowner Equity Insights
    • Loan Performance Insight
    • Mortgage Fraud
    • Property Tax Delinquency
    • Single-Family Rent Index
  • Insight Blogs

    • Hazard HQ
    • Office of Chief Economist
    • Affordable Housing
    • Homebuying
    • Insurance
    • Other Articles
  • More Resources

    • Events
    • Case Studies
    • White Papers
    • Podcasts
    • Quick Takes

Home / Intelligence / Extracting Property Quality and Condition from Real Estate Agent’s Comments

ABOUT THE AUTHOR
Bin He
Bin He
Executive, Science & Analytics
View Profile
  • December 17, 2020

Extracting Property Quality and Condition from Real Estate Agent’s Comments

Quality and condition are two key components used to determine the value of a residential property. A newly renovated home that has a gourmet kitchen and an updated bathroom will be much more expensive than a similar home with only above-average quality and condition. Unfortunately, these two factors are hard to come by, which is why most automated valuation models (AVMs) assume average quality and condition. As a result, properties at two ends of the quality and condition spectrum often are very difficult to value.

To obtain property quality and condition, there are two questions that need be answered. The first is how to rate and standardize quality and condition. Fannie Mae and Freddie Mac (the government-sponsored enterprises or GSEs) have established specific definitions for quality and property and require appraisers to rate them on a standardized scale from C1/Q1 (best) to C6/Q6 (worst). For detailed definitions of C1-C6 and Q1-Q6, please refer to Fannie Mae and Freddie Mac Uniform Appraisal Dataset Specification. 

The second question is where to obtain quality and condition information in addition to the appraisal data. Outside of GSEs who receive almost all appraisal data, there may not be information available showing good coverage of property quality and condition. However, the advances in machine learning make it possible to extract information from nontraditional data sources such as text and images from Multiple Listing Service (MLS) data. 

Below is part of a real estate agent’s comment for a property that was sold recently and appraised as a C5 rating.

“Great opportunity to own a large home on a large lot with tons of possibilities!”

Per the standardized condition ratings, a C5 needs significant repairs and it appears that the selling agent hinted at this in their comments when the property was listed for sale.

CoreLogic has developed a model that leverages various machine learning techniques and its rich appraisal and MLS data assets to extract property quality and condition information from real estate agents’ comments. Figure 1 uses a word cloud to illustrate the words most used by real estate agents when listing properties for sale that were subsequently sold and rated as C6s.

Figure 1: Frequent Comments for C6-Rated Properties 

Wordcloud related to property

By the GSE standardized condition rating, a property rated as C6 has substantial damage and requires substantial repairs and rehabilitation. It is not a surprise to see key words such as “TLC”, “needs repair”, “fixer upper”, “fantastic opportunity” and “rehab”. Counting the appearance of negative words is a simple way to get quality and condition indicators. Furthermore, a sophisticated machine learning model can derive meaning from text.

This new property condition algorithm is just one of the innovations driving our Total Home ValueX AVM. .

  • Category: Blogs, Homebuying, Intelligence
  • Tags: AVM, Real Estate
ABOUT THE AUTHOR
Bin He
Bin He
Executive, Science & Analytics
View Profile

Related Posts

mississippi tornadoes
Blogs

March 24 EF-4 Tornado in Mississippi

CoreLogic estimates over 4,100 homes were within the path of the tornado that hit Mississippi on March 24, 2023.

March 29, 2023
California Atmospheric Rivers
Core Conversations

What Was it Really Like to Live Through the California Floods? Our Team Spills | Part 2

In Part 2, host Maiclaire Bolton Smith talks about the atmospheric rivers and the snow that has made headlines and headway in altering California’s natural hazard landscape.

March 29, 2023
CSI_Promo_Mar2023
Blogs

US CoreLogic S&P Case-Shiller Index Gain Slows to Pre-Pandemic Low, Up by 3.8% Year Over Year in January

The index continued to decline year over year in January, again posting a single-digit gain.

March 28, 2023

About Corelogic

  • Newsroom
  • Leadership
  • Careers
  • Ethics & Compliance

Accounts

  • Products Sign-in

Contact

  • Sales Contact
  • Product Support

Regions

  • CoreLogic Australia
  • CoreLogic New Zealand
  • CoreLogic UK

Follow & Connect

  • Facebook
  • Instagram
  • Linkedin
  • Twitter
  • YouTube
© 2023 CoreLogic. All rights reserved.
  • Legal
  • Privacy Policy
  • CCPA
  • Cookie Preferences
  • Security
  • Sitemap
  • Accessibility
  • Legal
  • Privacy Policy
  • CCPA
  • Cookie Preferences
  • Security
  • Sitemap
  • Accessibility