The real estate appraisal industry is growing at a rapid rate, which some attribute to exciting advancements in technology. From things like artificial intelligence (AI) to virtual inspection tools, technology is certainly making an impact on how appraisals are conducted. However, with that being said, an important question is raised. Is technology poised to replace the nuanced expertise of human appraisers?
Valligent, a leading provider of appraisal management and technology solutions, resides with the short answer being no. Instead, they see a future in which technology serves as a powerful tool, augmenting the human skill needed for appraisals. To delve deeper into this critical intersection between technology and human expertise, we sat down with two key figures at Valligent: COO, George Paquette, and Chief Appraiser, Jeff Hogan.
Their insights provide a compelling perspective on how innovations are being strategically integrated into the appraisal workflow, not to supplant the appraiser’s judgement, but to empower them with better tools, accurate data, and streamlined processes. Join us as we explore how technology is changing the appraisal industry in a big way, ultimately elevating the role of the human appraiser in delivering trustworthy, quick, and reliable property valuations.
Important Technological Integrations
As our world has progressed forward, technology has seemed to progress even faster. This has had a specific impact on the appraisal industry given the fact that it can help save loads of time, ultimately making clients happy. But what are some of these specific technological advancements improving the appraisal process?
“Computer vision technology is transforming the real estate appraisal process by automating, enhancing, and standardizing key aspects of property analysis,” says Hogan. Computer vision can analyze property photos or video walkthroughs to evaluate the condition, quality, and materials of a home and determine the quality of appliances, flooring, counters, etc. Furthermore, it can be extremely useful in validating property condition ratings, identifying renovations/upgrades, as well as recognizing inconsistencies and discrepancies in MLS photos. Balancing this tool with the expertise of humans, helps the appraisal process become more reliable, as well as making the process quicker as a whole.
In addition to computer vision technology, Paquette sees artificial intelligence as a main proponent of the appraisal industry. “[Artificial intelligence] is rapidly increasing in the appraisal review and data collection process. We are starting to see appraisers, lenders, reviewers leveraging AI to automate manual processes.” Therefore, you can see the importance of technology outside of the inspection itself in the appraisal process. Technology assists in assessing quality, accuracy, and compliance with relevant standards and guidelines.
The Need for Human Expertise
Although technology can be an extremely useful tool in getting things done, numerous scenarios remain in which human expertise is of the utmost importance. Paquette commented on this, saying, “The more complex the assignment, the need for in-person inspections increases. This could be a highly upgraded home, a unique property, a severely damaged home, or a property with boundary issues.” In these specific instances, the critical thinking and nuanced judgment provided by the appraiser is necessary.
Hogan also commented on this, explaining, “…AI technology may not correctly assess things like neighborhood appeal, traffic noise, or water/mountain views, all of which can have a major impact on the value of the property.” While technology certainly helps streamline the process, the need for human expertise in these scenarios remains crucial, highlighting the idea that technology should be viewed as an enhancement too, rather than a replacement for, the indispensable expertise of the human appraiser. On surface level, relying on technology is okay, however, there are certain aspects that can be completely overlooked without a human in the equation.
Valligent's Relationship with Technology
Again, with the quick advancements in technology, it is important to remain open-minded to new things, staying up to date with a space that is evolving at a rapid pace. When it comes to Valligent’s specific role in this, Paquette notes that, “Between Valligent, and the team at Veros Real Estate Solution (sister company to Valligent), there are a lot of forward-thinking individuals with extensive valuation experience who thrive on building practical client solutions and are always looking at what is ahead.” To put it simply, Valligent is adapting to what the future might hold for the appraisal industry. Specifically, they are particularly excited about combining managed virtual inspections and AI with borrower-friendly technology, ultimately providing the best user experience for the applicant or agent.
Moreover, Hogan spoke on AI-powered tools like VeroSCORE, which are being used to quickly and efficiently analyze and review appraisal reports to rate overall compliance, credibility, and completeness. “Our Valligent review team uses this tool [VeroSCORE] to differentiate between a complex assignment and one that is more straightforward, requiring less time and lower risk,” says Hogan. Ultimately, this use of technology allows employees at Valligent to balance time more efficiently, and focus on higher risk/complex appraisals, which ultimately makes things go faster, as well as mitigating errors/inconsistencies on appraisal reports.
Consequently, Valligent is adopting the use of new technologies that are rising quickly to the surface, by pairing them with the terrific knowledge of humans, creating a synergy between the two that majorly benefits clients in the long run.
The Future of Technology in the Appraisal World
When looking at how fast technology has entered the appraisal industry, and become a main proponent of the work within, it is hard to imagine what the future of it will look like. However, regardless of what direction it goes in, Paquette sees the need for humans to stay consistent, regardless of the advancements seen in technology. “…homes are not easily quantifiable based on things like living area, bedroom/bathroom counts, or online photos. Many times, the small nuances of a home make all the difference in scenarios in which there are numerous offers and is selling above the initial asking price.” Ultimately, he can see appraisers morphing into more of a detective role, collecting facts and market data using AI and other tools, and less time with data input, or driving.
As for Hogan, our Chief Appraiser, he sees AI becoming and remaining to be an important role in the appraisal process as a “co-pilot”, handling the heavy lifting data processing while appraisers apply their expertise where it matters most: analysis judgment, and client trust. Therefore, it is apparent that there is a future for technology in the appraisal industry, but not one without the need for the human appraiser.
Conclusion
The insights from Valligent’s George Paquette and Jeff Hogan paint a clear picture of the appraisal industry’s trajectory. While technological advancements like computer vision and artificial intelligence are undeniably streamlining processes, and enhancing data analysis, the core of accurate and reliable property valuation remains firmly rooted in human expertise. The nuanced understanding, critical judgement, and ability to interpret intangible factors that experienced appraisers bring to the table are not only irreplaceable but are, in fact, amplified by these technological tools. As Valligent strategically integrates these innovations, the future of appraisal appears to be one of collaboration, where technology served as a powerful ally, empowering human appraisers to deliver faster, more accurate, and ultimately, more trustworthy valuations for clients. This synergy ensures that the industry continues to evolve, not by erasing the human element, but by elevating it through intelligent technological augmentation.
Interested in learning more about how Valligent is integrating technology with human expertise in appraisals? Visit Valligent.com today to explore our solutions and insights!
