Non-Appraisers Valuation Never Appropriate
Here is a NAR deck on AVMs (automated valuation models).
Here are some recent survey results that show more than half of the respondents indicated, it is either NEVER appropriate or NOT SURE if it is appropriate for a non-appraiser to perform a valuation on a home.
So the jury is still out for a third of respondents but a third are absolutely sure it is inappropriate. One can infer that appraisers have an opportunity to convey what AVMs really are to the public.
President & CEO at Miller Samuel Inc.
Jonathan Miller is President and CEO of Miller Samuel Inc., a real estate appraisal and consulting firm he co-founded in 1986. He is a state-certified real estate appraiser in New York and Connecticut, performing court testimony as an expert witness in various local, state and federal courts.
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Image credit flickr - Eco Dalla Luna
Then why does counties give the homeowners an opportunity to protest and suggest value. Which is crazy. People outside of appraising residential think it’s easy .
I like how all three companies that they have listed that create AVMs on their presentation are partially owned by NAR.
Jonathan,
Here is the thing – have you ever received “comparables” from FANNIE with the “Please explain why you didn’t use these sales” statement. The “comparables” are typically WAY different than the subject property yet FANNIE’s algorithm selects them. FANNIE has more data than anyone on the planet. What if we utilized their selection to value a property? That would be the equivalent of an AVM.
“Who creates avm’s? Anyone with access to data.”
Who can manipulate online photograph data? Anyone with photoshop.
The point of the article is that licensed salespersons recognize the value of the appraisers license as the majority opinion. They don’t want to see students and interns, tech guys, lender employees, dramatic shifts to avm automation any more than the appraisers do.
Was reading corelogic jobs postings earlier today. CSR non appraiser – $47k avg base salary, to 70 something. It’s finally coming true, non appraiser clerks may earn more than the appraisers they manage. Tech guys get an easy 125k, managers always 80k+, regular workers 50k range. These companies are ‘managing’ the appraisal industry to death. As usual, worker reviews are hilarious to read through. They lay off everyone who knew what they were doing, then wonder what happened. AVM’s and their development and management departments will not be somehow magically insulated from their employers greed and insatiable desire to get more for less. An appraiser whom knew how to code like the pro’s would still most likely tell you that it’s impossible to code exact predictions about human behavior in real estate. The beat skips on.