Method and apparatus for monitoring the strength of a real estate market or commodity market and making lending and insurance decisions therefrom
OwnerRobert E. Rothsteininventor
Life of this patent
Estimating the term…
Abstract
By gathering information regarding the total number of sales, total number of pending listings, total number of active listings, and total number of expired listings in a time period, a market index may be derived. This market index can then be charted over a plurality of periods, giving an indication of any temporal trends. The market index can further be used to guide and determine the action of a service provider such as a lender or title insurance company in a proposed real estate transaction.
Claims11
A method for extending real estate services to a party comprising the steps of:
- (a) using computing means having a central processing unit to gather from a first data source a total number of closed sales, S.sub.c, in a real estate market in said period;
- (b) using said computing means to gather from a second data source a total number of sales which are pending, S.sub.p, in said market in said period;
- (c) using said computing means to gather from a third data source a total number of expired listings, L.sub.e, in said market in said period;
- (d) using said computing means to gather from a fourth data source a total number of active listings L.sub.a, in said market in said period;
- (e) determining a market index, M.sub.i, indicative of the strength of said market over a period consisting of a length of days, P.sub.d, in accordance with ##EQU6## and (f) extending, terminating or repositioning said real estate service to said party if said market index is above or within a predetermined threshold of market activity.
A method for extending real estate services to a party comprising the steps of:
- (a) using computing means having a central processing unit to gather from a database:
- the total number of closed sales in said period, S.sub.c ;
- the number of sales pending in said period, S.sub.p ;
- the number of listings which have expired in said period, L.sub.e ;
- and, the number of properties actively listed, L.sub.a, at the end of said period;
- (b) calculating a total number of listed properties in said market, T, in accordance with the equation:
- T.sub.1 =S.sub.c +S.sub.p +L.sub.e ;
- (c) determining the total number of successfully marketed properties, T.sub.s in accordance with the equation:
- T.sub.s =S.sub.c +S.sub.p ;
- (d) determining a demand index, D, as being T.sub.s divided by T.sub.1 ;
- (e) calculating a rate of absorption, R.sub.a, as being T.sub.s divided by a length of days, P.sub.d to be monitored;
- (f) calculating a supply level, S.sub.i, as a ratio of L.sub.a divided by R.sub.a ;
- (g) calculating a market index indicative of the strength of a real estate market over P.sub.d, as the ratio of D divided by S.sub.1 ;
- and
- (h) extending said real estate service to said party if said market index is above a predetermined threshold.
Dependencies are inferred from the claim text.