How is technology changing the valuations industry?
Oct 24th, 2019 | By FCT
In the past, appraisers spent vast amounts of time scouring data sources for public records as well as previous and current listings. To gather information on one property, an appraiser would take manual measurements and conduct lengthy physical inspections.
With better technology, appraisers are able to accomplish more in less time and with higher quality reports. This means faster turnaround times, too.
There are two main tech enhancements that have contributed to change in the industry.
Data auto population
Computer-aided data collection can be used to auto populate reports with property data. It also results in more credible home valuations due to more access to data.
One of the benefits of data auto population is that appraisers no longer need to fill out forms and conduct research. They are free to focus their time on analysis, which is where their expertise is most valuable for lenders and borrowers.
Automated valuation models (AVMs)
AVMs process all the data that gets collected via algorithms and machine learning. These models use statistical techniques and appraisal methodology.
They provide accurate real-time estimates of market value. Couple this technology with no-fault valuation insurance and clients get the fastest, lowest risk, and most cost-effective appraisal.
Better access to big data also gives appraisers flexibility in how properties are inspected. It’s even possible that a visual inspection isn’t necessary for some assignments, thanks to the extensive data available. In some cases, even drones can be used to inspect properties.
Besides changing the way appraisers work, there are benefits to the clients as well.
Efficient and accurate valuations
One of the biggest changes in the valuations industry is the measurable reduction in turnaround times. The new standard for home valuations is seeing more efficient and accurate valuations in a shorter amount of time. And more progress will keep coming as technology keeps improving.
Improved quality assurance
Technology has made it possible for individuals to connect to big data in the cloud. This access results in unparalleled quality assurance crosschecks during appraisals.
It reduces the need for an intense quality control at the end of the process in order to look for defects and issues with quality.
Detecting errors during the development and report-writing process means that these errors are caught before the lender lays eyes on the report. As a result, this cuts down on costs associated with back-and-forth communications.
The future of valuations
If we’ve learned anything from current technology trends, it’s that valuations is an industry that’s ripe for automation. We can expect the industry to continue to adopt new disruptive technology to streamline the process and become increasingly efficient.
If you’re an appraiser looking to expand your business, why not work with us to reimagine the valuations industry? Join our network of appraisers across Canada.
Services by First Canadian Title Company Limited. The services company does not provide insurance products. Some products/services may vary by province. Prices and products/services offered are subject to change without notice.
®Registered Trademark of First American Financial Corporation.