Why the appraisal industry in Canada is ready for change
Customers today want things faster than ever before—their standards are set by taxi apps, instant access to hundreds of TV shows online, and answers to any question at their fingertips. In fact, according to Google, “mobile searches related to ‘same day shipping’ have grown over 120% since 2015, as people are no longer willing to wait even a few days for their order to arrive.”
Some industries are still evolving to meet the growing demands of their customers. For example, over 20 years ago appraisal management companies (AMCs) came on the scene and disrupted the industry. Before AMCs, lenders would have to go directly to appraisers to get an estimate of a property’s value. But now, lenders can either provide AMCs with their approved list of appraisers or use the AMCs’ network. This can help remove the risk of bias and the appearance of collusion from valuations.
With the amount of data and technology available today, the appraisal market is primed for change. It’s possible to further improve the industry and make the appraisal process quicker, simpler and less expensive. And lenders are always looking for faster, better quality and well-priced appraisals, especially in a brisk market.
Currently, once a customer applies for a mortgage, it can take anywhere between three to ten days to get a property appraisal. This delay makes lenders seem outdated in today’s fast-paced world.
At FCT, we’ve taken a look at how we can improve the current process, and have introduced insured automated valuation model (AVM) appraisals.
While some lenders may be using AVMs already, we have multiple products based on property attributes, and by adding an insurance wrapper to the valuation, we reduce the risk associated with it. We’ve also been able to significantly reduce the time it takes for an appraisal to be completed, with turnaround times ranging from four seconds to 24 hours. By leveraging data, technology and field technicians, we reduce the workload of the appraiser, allowing them to complete more valuations in less time. Overall, this contributes to a better customer experience for all.
Have you tried using an AVM product for your institution’s appraisals? Tell us what you think!