AVM vs My Opinion
AVM versus my opinion…
My recent article “Why is Residential Appraisal in Trouble” lays out how the profession and the individual (you?) can prepare for the future. I do not take an emotional position for or against AVMs. AVM is a competing industry for valuations. AVMs have succeeded in taking a large market share for valuations and risk analysis in the past 20 years. Every large lender and our GSEs use them every day. And yes, a machine can only deliver an analytic result, not an opinion!
My only mission (Stats, Graphs, and Data Science classes) is to help arm appraisers with tools to take advantage of the technology available. An armed appraiser can beat an unarmed appraiser every day. An armed appraiser can beat an AVM every day.
It does bother me when someone ignores what science is. Science is the systematic study of the world through observation or experiment. There are systematic ways in which appraisers can deliver better valuations, risk information and other services.
The world has changed. Appraisal is in trouble unless it prepares for the future. That is now.