In the real estate valuation industry, the ability to effectively use the newest technologies is paramount for streamlining the process and differentiating yourself from competitors. Valuations Review’s recent publication, “Appraisal Technology In-Depth Report,” comprised of several informative articles, offers insights from real estate valuation industry experts. (Login to Valuation Review to download the report here.)
Tech Tools and Tips to Benefit Appraisers
George Paquette, Dustin Harris, Tony Pistilli, Remington Jones, and Brian Zitin highlight the importance of new technology tools appraisers use to complete more sophisticated assignments. Innovations like storage devices, appraisal work files, and cloud-based document systems keep the process more organized, secure data, streamline workflow, and lead to more fair valuations.
In addition, they discuss how advanced digital cameras, smartphones, laser scanning software, and AI (Artificial Intelligence) tools are being used to analyze homes, conduct measurements, predict market trends, and more.
Some concerns, such as data accuracy and integrity, privacy, and technology-driven bias, have persisted in the valuation process. Real estate valuation experts must ensure their reports are accurate, do not use misleading language, and are created by qualified professionals.
Will New Forms Mean New, Better Technology for Appraisers?
With the Universal Appraisal Dataset (UAD) and Uniform Residential Appraisal Report (URAR) coming out in late 2024 or 2025, industry experts wonder how these will mitigate the valuation process bias and how universal the reports will be.
George Paquette, Jeff Bradford, Brian Zitin, Remington Jones, and Brian Zitin are all in agreement that the new reports will be instrumental in addressing past issues and reducing bias and subjectivity in the real estate valuation process.
How “Modern” is Modernization Becoming?
Fannie Mae is advancing the valuation process through various options tailored to property and loan risk levels, blending traditional appraisals with newer alternatives like value acceptance. This approach aims to enhance efficiency and accuracy while reducing costs for borrowers.
Freddie Mac is pursuing appraisal modernization to improve consistency and efficiency in valuations. Though primarily focused on realtors, the integration of Property Technology in real estate holds the potential to modernize appraisals through innovative technologies like AI and VR. However, challenges remain that pose possible impacts on the appraisal workforce’s evolution and efficiency.
AI, ChatGPT: What Appraisers Should Know Moving Forward
AI and ChatGPT have grown exponentially and are changing how the world works. Jim Amorin, former president and Chief Executive Officer of the Appraisal Institute, explains how these technologies are becoming required for valuation professionals. Their sophistication streamlines the real estate valuation process. From drafting property descriptions to analyzing complex market data, AI and ChatGPT’s capabilities are changing how property valuations are conducted through high levels of efficiency and productivity.
Despite this rapid growth of AI, Valligent Chief Operations Officer (COO), George Paquette, believes valuation experts must not become too dependent on AI generated data. Human expertise and personal touch provide a level of insight that AI cannot.
Floor Plan Technology, and the Benefits for Appraisers
Floor plans done by devices with LiDAR technology bring a level of consistency and accuracy to real estate valuations that older valuation methods do not. With floor plans becoming more prominent in the market, valuation experts should prioritize ease of use, turnaround time, and technological capabilities with their tools.
George Paquette explains that appraisers must use these tools to aid their valuation process. Real estate valuation experts must continue to double-check the technology’s findings and make additional visits to the property. If done accurately, floor plans streamline the process for the valuation expert and the home buyer.
Key Takeaways
In conclusion, Valuation Review’s report offers a host of insights from industry professionals about utilizing the latest technologies to improve the real estate valuation process. With trends ranging from the newest floor plan tools and AI to appraisal modernization, valuation experts have a wide range of tools to streamline and improve their business.
For additional information on these technologies and more, login to access and read the Valuation Review here. As the real estate valuation process continues to grow, staying informed with the latest technology trends will help appraisers thrive in a competitive market.
