Computer-Aided Appraising: How New Technology Will Spur Growth in the Appraisal Industry Jordan Petkovski Vice President, Chief Appraiser
Technology, Friend or Foe? The way in which technology impacts the residential appraisal industry is up to us. – Embrace it, and make it work for the appraiser. – Reject it, and its use will usurp the residential appraiser’s position within the mortgage lending process. – Adaptability is critical!
Why is change necessary? Our current methodology isn’t cutting it! – Service level expectations from the lending community have made EFFICENCY and CREDIBILTY a top priority. The users of appraisal services don’t trust the appraiser. – Relying on three sales and two listings to derive a value opinion isn’t statistically meaningful.
Historical Perspective “Those who fail to learn from history are doomed to repeat it.” - George Santayana
Looking Forward Technological advancements in the residential appraisal space have streamlined the appraisal process, but the real magic is still to come… Mobility Standardization Integration Analytics
Our “Methods & Techniques” aren’t working in todays mortgage lending environment. Residential Appraisers will be replaced if we don’t reevaluate the way in which we support the mortgage lending process. Lenders struggle with disparate value conclusions on the same property, with the same or similar effective dates when two appraisers are engaged. Why is it happening?
An Updated Value Proposition More objective appraisals, derived via regression of larger pools of data, supplemented and driven by the local subject matter expert, leads to an increased level of credibility.
Appraiser’s Are Attritting… The industry is aging and few are entering the profession. Will lenders accept a turn-time of two months for a residential appraisal in a major metropolitan area, or will they find an alternative solution? Technologically Assisted Appraisals WILL help us in reaching the appraisers of tomorrow, today!
Technology's role in furthering our profession. Real-time connectivity between supervisory appraiser and trainee during the course of the inspection and write-up. Working off an iPad (instead of a clipboard) is natural for the youth of today. Singular UI reduces training times.
Say it isn’t so!!! Line item adjustments aren’t regressed from the market using spreadsheets or HP12C’s, they’re being SWAG’d.
Ensuring the Public’s Trust Technology – including Big Data, Analytics and Algorithms – is no substitute for an appraiser professionals expertise, but its use will help us rebuild confidence in our profession.
Change Takes Consensus It’s not only about the use of technological enhancements in the appraisal production process by appraisers….it’s about the drive towards adoption when it comes to the users of appraisal services. Remember convincing lenders an electronically signed report, delivered via PDF, was acceptable?