Corelogic Takes The Zillow Approach
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Appraiserville – FTC and Corelogic characterize the appraisal industry not as it actually is.
Apparently, we learned that big data can tell you what the best color of paint is for maximum value of your bathroom – even if you believe that, it cannot tell you that the house was occupied by 200 cats.
I was taken aback by the self-serving press release from Corelogic that basically said appraisals are questionable and automated valuations are better. That makes sense coming from a data firm with their own AVMs. The article lists a series of data that question the credibility of comp selection and adjustments with the “…these patterns aren’t sufficient to make conclusions at the loan level; more research is needed. However, he says, “They do reveal aspects of underlying inconsistency in the appraisal development, for which more sophisticated data analytics techniques are likely better suited…” Read more »