Realtycmv.com is powered by a powerful and accurate real estate liquidity analysis engine otherwise known as The relar engine. The relar engine engine is designed to determine the likely selling price and the amount of time required to sell an individual piece of residential real estate.  The relar engine engine does not directly address the issue of real estate “valuation” but instead focuses on using sophisticated mathematical methods to predict what is called the liquidity, the amount of money to be derived from the sale of real estate and the amount of time needed to obtain that amount.

The liquidity analysis provides an answer to a basic question about a property:

“If the property were put on the market today, how much would it sell for and how long would it take?”

This question poses the two elements of liquidity: the amount of money realized from a transaction and the amount of time required to  obtain that money.  The real estate liquidity analysis engine uses statistical data analysis of real estate markets to predict both the expected selling price and the amount of time required for a sale for a given piece of residential real estate.  The combination of expected sales price and expected time to sell is called liquidity. It is intended to answer the basic question: “If this house is put on the market now, how much will it sell for and how long will it take?”

The data analysis uses as input information from both public records databases and real estate sales databases. Public records databases provide title data while real estate sales databases (Multiple Listing Service databases) provide information about real estate offered for sale and the current state of a local real estate market.

In order to predict the sales price and sale time for a property, The relar engine computes a value based on the current state of the market, as well as values at a time three months and six months in the past. This information is used to provide trend information allowing the value of the property to be predicted into the future. The time of the future prediction is estimated by modeling the behavior of buyers and sellers in the local market as shown by sales activity from MLS databases. MLS databases provide information about closed, pending, open and expired listings. The properties represented in each listing type provide a statistical view of the behavior of buyers and sellers in the local marketplace. In particular, the arrival of potential buyers at a particular property is modeled by a Poisson distribution. A Poisson distribution is a statistical model that provides a distribution of events where the interval between events is a uniform random function. Information from closed and pending listings is used to fit the parameters of the distribution and predict the probability that a buyer will have arrived at the property after a specified period of time.