Financial applications of fuzzy case-based reasoning to residential property valuation

Abstract

We present PROFIT, an advanced prototype system developed to estimate residential property values for real estate transactions. The system enhances case-based reasoning (CBR) techniques with fuzzy predicates expressing preferences in determining similarities between subject and comparable properties. These similarities guide the selection and aggregation process, leading to the final property value estimate. Fuzzy techniques are also used to generate a confidence value qualifying such estimate. PROFIT has been successfully tested on thousands of real estate transactions.