Big Data is in Real Estate
- Federal Valuation Agency Impact on Appraisers & the Public - July 22, 2022
- Is Georgia Going Rogue? - June 13, 2022
- Bias in Automated Valuation Models - February 28, 2022
The only thing Big Data can’t do is smell.
I got a call from my credit card company. Now I have been traveling a lot lately on business. Apparently, someone got my number and charged $199.53 at WalMart on Monday. I was not in WalMart, but a couple a weeks ago I bought a new TV at Sam’s Club. No question about the Sam’s Club purchase. How did they know I did not go to WalMart? I am truly amazed. The reason – BIG DATA!
The banks are amassing massive amounts of data on you, me, everyone. They know more about you than you do. Big Data is a term we need to pay attention to. Big Data is everywhere. So all the real estate transactions, assessments and listings are being amassed. Corelogic is at the front of this. They own MLS’s, Marshall Swift, AMC’s, and title companies. Big Data is in real estate!
So how will this impact us?
Many MLS’s use realist. Richmond MLS will be making the move soon. There is a feature on it that is awesome. It does an AVM and it scared me. It’s that good. The only thing Big Data can’t do is…. to quote Pat Turner…. is smell.
Fannie Mae has Big Data in the form of UAD. How long before Corelogic gets it? I bet they already have it. I heard FNMA has over 1 BILLION appraisals in their data. I have about 8,000. The commercial guys data base is maybe 4,000. From a data stand point, we don’t stand a chance.
So what is our future?
The number of appraisers entering the field is way down. Why? Maybe because of BIG DATA. They are just not needed. What happened to the Fireman on the trains. Diesels don’t need a fireman. What about the VCR rental store? We need to plan and adapt.
VACAP is regularly sending out information now. The state meeting is on February 23 at 10 AM. The full board will be discussing C&R fees. Where is BIG DATA when you need it? It’s there with every invoice we send. That is why it’s important just to say NO! to an unreasonable fee. If you win every bid, you are to cheap, a rich businessman told me.
VACAP met with several other State Coalitions. Apparently, an appraiser can file a complaint with the FDIC about the actions of an AMC. VaCAP will provide more details on this later.
By Alex Uminski, VaCAP Treasurer