Confidence Level

• The Hometrack Confidence Level is a statistical indicator of the expected accuracy of an AVM valuation.
• Hometrack Confidence Levels run from 0 to 7, with 0 denoting a low confidence and 7 representing high confidence of good accuracy.
• Each Confidence Level relates to preset Forecast Standard Deviation (FSD) which enables a user to understand the expected variance of a valuation irrespective of where the property is located, what type of property, and how expensive that property is.
• In essence high Confidence Levels are derived on properties that are in areas where properties are similar, there is good comparable evidence and regular turnover.
• Any user of an AVM should be aware of and understand the importance and critical relevance of the Confidence Level and its relationship to an AVM derived valuation. Careful consideration and caution should be taken when assessing AVM valuations with very low Confidence Levels.