Role Of Technology In Home AppraisalsBy leveraging technology, appraisers can access robust data, streamline processes, and utilize advanced analytical tools and technology improves efficiency, accuracy, and accessibility of home valuations. 
Twenty years ago a home appraisal cost $350 - which would be double or triple ($700-$1050) today with inflation. The reason costs have stayed low (an appraisal today costs around $500) is because technology has greatly assisted the appraisal process. Here are some ways in which technology impacts home appraisals: Data Collection & AnalysisTechnology enables appraisers to access vast amounts of data, including property records, comparable sales, market trends, and local market statistics. Online databases, Multiple Listing Services (MLS), and valuation platforms provide appraisers with comprehensive data sources for analyzing property values. Automated Valuation Models (AVMs)AVMs use statistical models to generate property valuations. These computerized systems analyze various data points and comparable sales to estimate a property's value. AVMs are often used for quick valuations or as a starting point for appraisers to consider during the appraisal process. However, there are flaws with using an entirely automated system for home appraisals which we will discuss later in this article. Geographic Information Systems (GIS)GIS technology allows appraisers to map and analyze spatial data related to a property. They can access information such as property boundaries, flood zones, school districts, and proximity to amenities. GIS tools assist in identifying relevant geographic factors that influence property values. Mobile Apps & Digital Appraiser SoftwareAppraisers use mobile apps and digital tools to collect and document property information during inspections. They can capture photos, record measurements, and input property details directly into digital forms or appraisal software. This streamlines the data collection process and reduces paperwork. Appraisal Management SystemsThe management of appraisal orders, scheduling, communication, and file sharing between appraisers, lenders, and appraisal management companies (AMCs) is simplified by technology. Appraisal management systems streamline workflow and ensure coordination. Market Data Analysis ToolsTechnology provides appraisers with software and tools for comprehensive market data analysis. These tools allow them to identify trends, analyze market conditions, and make informed adjustments when comparing properties and determining value. Cloud StorageAppraisers can securely store appraisal reports, property data, and supporting documents in cloud-based storage systems. This ensures easy access, organization, and sharing of appraisal information among relevant parties. E-signatures & Digital SubmissionsTechnology enables appraisers to utilize e-signatures and submit appraisal reports electronically. This expedites the delivery of appraisal reports to lenders and eliminates the need for physical paperwork. Flaws With Relying on Digital Automated Valuation Models (AVMs)While AVMs can provide valuable insights and help streamline the appraisal process, they have certain limitations. These models rely heavily on the accuracy and completeness of the data available, and they may not capture unique property features including quality, condition, updating, and living area - especially if the home has additions. In addition to these nuances, if you were to have an AVM done on your home by several different companies, the results could vary by 20% or more. It’s up to the appraiser to interpret the data and determine which comparable valuations are relevant to a property’s value, and to what extent. Looking to AVMs to take the bias out of appraisals? According to the Consumer Finance Protection Bureau, while machines crunching numbers might seem capable of taking human bias out of the equation, they can’t. Based on the data they are fed and the algorithms they use, automated models can embed the very human bias they are meant to correct. And the design and development of the models and algorithms can reflect the biases and blind spots of the developers. A home valued too high can lock a homeowner into an unaffordable mortgage and increase the risk of foreclosure. A home valued too low can deprive homeowners of access to equity and limit the mobility of sellers. When it comes to buying or selling a home, we all need and deserve fair and nondiscriminatory home valuations done by licensed, professional home appraisers. Need A Home Appraisal In Phoenix, AZ?No matter what you need - single family home, multi-family, lake property, exclusive estate or mobile home, there's nothing we can't handle in the Phoenix area including Scottsdale, Chandler, Gilbert, Mesa, San Tan Valley and surrounding areas.
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