CASA Model
CASA is the market-leading automated valuation model (AVM) for accurate, fast value estimates and predictive collateral
scores for residential properties across the United States. Leading financial institutions and many others trust CASA
for applications that include appraisal substitution, collateral scoring, customer retention, appraisal quality control,
collections and loss mitigation, portfolio due diligence and more.
Valuation Methods
CASA measures home-specific price dynamics by combining several valuation methods, whenever possible, including
characteristics analysis (often referred to as "hedonics"), Case-Shiller (repeat sales) Indexing, non-linear regression
techniques, home price forecasting and unpublished innovations by CASA's research team. To compensate for varying
degrees of data quality by geographic area, the optimal combination of data elements and estimation methodologies is
determined and weighted for each property analyzed.
CASA is engineered to optimize hit rate without compromising accuracy and collateral score veracity so that customers
can benefit from CASA value estimates that are not merely fast, but reliable.
- Characteristic Analysis
Regression technique that assigns values to attributes of individual houses. The CASA system calculates
market-specific regression results on statistically valid samples throughout the United States. These statistics are
re-calibrated on an ongoing basis as market conditions change and the CASA database grow.
- Comparable Property Approach
Comparable data determines the property's value from estimated current values of neighboring homes. Unlike the
traditional appraisal process, CASA is able to draw upon a very robust set of historical sales indexed to estimate
their current values, rather than rely on merely a few that may have sold within the past few months.
- Home Price Forecasting
Forecasting enables CASA to mitigate the lag inherent data collection and filtration processes. CASA is the only AVM that addresses the inefficiencies of public record data compilation with forecasting technology.
CASA Safety Scores
The accuracy of each of the analytic techniques used with CASA are tested over time at County, Zip Code and / or other
micro-market levels. This rigorous testing enables CASA to estimate the precision of the final overall value estimate
for each report by calculating the accuracy of each valuation method used and also how well the techniques are able to
work together for the given property. The CASA Safety Score is an ordinal scoring metric linked to a fixed 10%
valuation accuracy threshold. It is a statistically accurate measure of the probability that CASA's estimated value
for a subject property does not exceed 10% of the "true" value of the home. For example, a safety score of 85 means
that there is an 85% probability that the CASA value estimate delivered does not exceed the actual value by more that
10%.
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