The Landeur – Professional Analysis for US Auction Properties

Technical explanation of our multi-factor scoring engine and analytical framework

Scientific Approach to Property Valuation

Our scoring system is built on quantitative analysis, combining traditional real estate metrics with modern data science techniques. Each property receives a composite score from 0 to 100, derived from weighted evaluation across nine distinct criteria.

This methodology has been developed specifically for US auction properties including Tax Deeds, Tax Liens, and Foreclosures, where traditional valuation methods often fall short due to unique risk factors and market conditions.

Overall Score Calculation

Weighted sum of individual criterion scores

Overall Score = Σ (Criterion Score × Weight)

Where weights sum to 1.0 and can be customized per user preferences

Default Weights:

Market Comparables0.15 (15%)

Geographic Risk0.15 (15%)

Resale Margin0.15 (15%)

Price Trends0.10 (10%)

Rental Demand0.10 (10%)

Neighborhood Quality0.10 (10%)

Market Liquidity0.10 (10%)

County Conditions0.10 (10%)

DOM History0.05 (5%)

Detailed Criteria Breakdown

1. Market Comparables Analysis

Weight: 15%

Compares listing price against:

Assessed value (tax assessment)
After Repair Value (ARV) estimates
Recent comparable sales in area

Score = 50 + adjustment based on price/assessed_value ratio

2. Price Trends

Weight: 10%

Evaluates market appreciation potential by analyzing:

Historical price growth in the area
Current market temperature (hot/cold markets)
Economic indicators for the region

3. Geographic Risk Assessment

Score Interpretation

80-100Excellent Deal - High Priority

65-79Good Opportunity - Worth Pursuing

50-64Fair Deal - Proceed with Caution

0-49High Risk - Avoid Unless Expert

Important Disclaimer

This scoring system is a decision support tool, not a guarantee of investment performance. All real estate investments carry risk, and past performance does not guarantee future results.

Users should conduct their own due diligence, including property inspections, title searches, and consultation with legal and financial professionals before making investment decisions.

Quantifies location-based risks:

Flood zone designation (-25 points if in flood zone)
Fire risk level (0-30 point penalty based on severity)
Climate change vulnerability score (0-30 point penalty)

Score = 100 - Σ(risk penalties)

4. Resale Margin Potential

Weight: 15%

Calculates profit potential:

Margin % = ((ARV - Acquisition Cost) / Acquisition Cost) × 100

Score scaling:

50%+ margin = 100 points
30-50% margin = 80 points
15-30% margin = 60 points
<10% margin = 40 points

5. Rental Demand

Weight: 10%

Assesses rental market strength using vacancy rates, average rent prices, and demographic trends in the area.

6. Neighborhood Quality

Weight: 10%

Considers:

Crime statistics
School ratings
Walkability score
Proximity to amenities

7. Market Liquidity

Weight: 10%

Based on days on market (DOM):

<30 days = 90 points (very liquid)
30-60 days = 80 points
60-90 days = 70 points
90-120 days = 60 points
120-180 days = 50 points
180+ days = 30 points (illiquid)

8. County Conditions

Weight: 10%

Auction-specific factors:

Redemption period length (shorter is better)
Outstanding liens and encumbrances
Auction type risk profile (tax deed vs tax lien)
County processing efficiency

9. Historical DOM Analysis

Weight: 5%

Analyzes historical days-on-market patterns for similar properties in the area to predict liquidity.

Methodology

Detailed Criteria Breakdown