Home » Direct Market Models

Direct Market Models

Direct market models analyze how various housing characteristics influence sales prices in a particular period and geographic area. These models typically describe market value as a function of a property’s location and physical attributes. Direct market models are noted for their superior accuracy compared to other approaches; however, their substantial data requirements often result in a lower percentage of usable valuations, as many states lack sufficiently detailed property records to fuel this type of AVM. Hedonic models are location-specific and therefore difficult to generalize across different markets.