Customization of the Product

Because the liquidity analysis is based on statistical data models, the analysis not only provides an estimate of the sales price and time to sell a property, but also provides information about the statistical data distributions underlying those estimates. This allows the values provided to be customized to the needs of the individual customers. For example, a customer might request the average expected sales price for a property. This value corresponds to the mean value of the Gaussian distribution representing the likely range of sales prices for the property. Since the sales price is modeled by a Gaussian distribution, and the moments of the distribution are also calculated, the result can be modified to provide a price representing other probable outcomes. For example, the mean value represents a price with a 50% confidence level. Using the moments of the distribution, other confidence levels can be calculated and provided for the customer. The customization can be done on a query by query basis with defaults provided for each customer and each requestor.

Similarly, time to sell is modeled by a Poisson distribution. This parameters of this distribution are determined by fitting the sale time data available from MLS databases, and confidence levels on sale time can also be computed.

Customers can thus specify results ranging from extremely conservative liquidity analysis (eg requiring a 90% confidence of achieving the price with 90% confidence on the time it will take) to more realistic models (90% price confidence in 50% confidence (average expected) time, to a model more representative of a typical appraisal model (50% confidence price representing average expected price in 50% confidence time representing average sales time. The choice will likely be driven by the use the customer is making of the analysis. The primary advantages to the customer are that the meaning of the results are well defined statistically and can be adjusted to the customer’s particular business and risk assessment models.

Similar customization is also available for the results of bulk queries.

Operation of the Product

Operationally, RELAR provides default customizations based on the preferences of particular customers and individual requestors. A customer may be an organization or individual who has established an account and provided a default customization profile. Each customer may designate multiple requestors, if desired. Each requestor established a user name and password, which provides the capability to override the default customizations to meet the needs and requirements of individual requestors within the organization. If requestors do not provide separate customizations, the default values supplied by the customer organization are used.