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Computer-Aided Appraising Computer-Aided Appraising

Computer-Aided Appraising - PowerPoint Presentation

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Computer-Aided Appraising - PPT Presentation

How New Technology Will Spur Growth in the Appraisal Industry Jeff Bradford CEO Bradford technologies Inc ComputerAided Appraising What is it And why do we need it ComputerAided Engineering ID: 212266

computer appraising bradford aided appraising computer aided bradford technologies leader appraiser software market process technology appraisers avm analysis data

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Slide1
Slide2

Computer-Aided AppraisingHow New Technology Will SpurGrowth in the Appraisal Industry

Jeff Bradford, CEO

Bradford technologies, Inc.Slide3

Computer–Aided AppraisingWhat is it?And why do we need it?Slide4

Computer-Aided EngineeringHelped engineers solve problems that were previously unsolvable

Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising SoftwareSlide5

Computer-Aided DesignHelped architects design structures that were previously not buildable

Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising SoftwareSlide6

Computer-Aided ManufacturingHelped manufacturers produce products that were previously not possibleSlide7

Computer-Aided Golf Course DesignBradford Technologies, Inc. - The Leader in Computer-Aided Appraising SoftwareSlide8

Computer-Aided AppraisingWhat is it?It is the concept of harnessing the power of computers and technology to assist and empower the appraiser with capabilities that allow them to produce highly credible valuationsSlide9

Today…Appraisers have Powerful Form FillersAnd a lot of manual work!

Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising SoftwareSlide10

Time to Complete an AppraisalI typically spend

4 to 5 hours

on a report not including field work with research and analysis taking up most of the time

4-6 hours

once I get started

The clerical, research and analysis phases,

plus the actual time spent writing the report usually totals up to about 4 hoursBradford Technologies, Inc. - The Leader in Computer-Aided Appraising SoftwareSlide11

Typical Appraisal ProcessBradford Technologies, Inc. - The Leader in Computer-Aided Appraising Software

Beginning

Middle

End

Data Gathering

Inspection & Analysis

Report

4- 6 Hours + Inspection = 1 Day

Manual Process

Manual Process

Manual Process

Manual ProcessSlide12

Appraisal Quality Suffers

Office of the Comptroller of the Currency

17.6 % of appraisals contained contradictory information

35% of repurchased loans are due to faulty appraisals

Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising SoftwareSlide13

Appraisal Compliance IssuesUSPAP

UCDP, UAD

CFPB

Dodd Frank

Interagency Guidelines

Federal & State Independence Laws

Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising SoftwareSlide14

Result: Credibility SuffersSlide15

Why are Appraisers in this Position?

Why don’t appraisers already have

computer-aided appraising technology?Slide16

Appraising is considered an “Art”Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising SoftwareSlide17

Appraising is considered an “Art”Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Software

Y

ou would never expect a computer to value the Mona LisaSlide18

Appraising is considered an “Art”Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Software

We also don’t expect computers to accurately value our homeSlide19

But Ever Since 1981…

AVM

These Black Box property valuation systems have been getting better and better every year. Slide20

But Ever Since 1981…Their usage continues to grow

AVMSlide21

But Ever Since 1981…

AVM

“Each month, we provide more than

one billion

AVM values

to lenders, brokers, government agencies, marketing firms, consumers and insurance companies”.Slide22

Today Valuation is BIG BusinessProperty Valuation has become a ScienceTeam of more than 50 PhDs, economists, and modelersCombined with nation’s largest property and ownership database covering 98 percent of the U.S. populationEquals “Good Enough” property valuationsSlide23

Appraising has to be more than “art”Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Software

The “

art of appraising

has to be augmented by the “

science of appraising

” Slide24

Big Data-AVM Review SystemsAppraisers are being reviewed & scored by systems that utilize massive amounts of dataData from AVM indicates the appraised value may be in excess of the neighborhood

Requests to reconsider comp selection

Requests for additional influence explanation

Requests for comp adjustment support

etc.Slide25

Big Data-AVM Review SystemsThese review systems have access to more property data and can process it much, much faster than the appraiser.Slide26

Appraiser is at unfair disadvantage

Appraising is an “art”

Appraising is a “science”Slide27

Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Software

How can we compete ?Slide28

Is Mobile Computing the Answer?Slide29

More Efficient Inspections

Automatically loads

into the formsSlide30

Fill Out the URAR on a TabletSlide31

See More, Do More - QuickerSlide32

We Can Make Process More EfficientBut the Appraiser Cannot Compete

Appraising is an “art”

Appraising is a “science”

AVMSlide33

Partner with an AVM?AVMs: Hop on board the train or get left behind?

A

V

MSlide34

Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Technology

Artificial Intelligence

AVMSlide35

Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising TechnologyArtificial IntelligenceSlide36

Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising TechnologyArtificial

vs

Augmented Intelligence

VS

+

Computer

Compute

r

+

Computer directed

Human directed Slide37

Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Technology

VS

+

Computer

Human directed Strategy

The Winner

Artificial

vs

Augmented IntelligenceSlide38

Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Technology

VS

+

Computer

Appraiser directed Analysis

The Winner

Computer-Aided AppraisingSlide39

Computer-Aided AppraisingBradford Technologies, Inc. - The Leader in Computer-Aided Appraising Software

Inspection & Analysis

Report

Data Gathering

Shortens the Entire ProcessSlide40

Get Rid of This

Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising SoftwareSlide41

Reduces ThisBradford Technologies, Inc. - The Leader in Computer-Aided Appraising SoftwareSlide42

Bradford Technologies, Inc. - The Leader in Innovative Valuation Solutions

+

Adds “Science” to the “Art”

Computer-Aided AppraisingSlide43

Bradford Technologies, Inc. - The Leader in Innovative Valuation SolutionsClosed Black Box AVMs

AVM

Valuations Providers

Zillow

Veros

Collateral Analytics

Corelogic

LPS

Many moreSlide44

Bradford Technologies, Inc. - The Leader in Innovative Valuation SolutionsAnalytics are open to Appraiser

Computer-Aided Appraising opens up the black box and let’s the appraiser drive the process and the analyticsSlide45

Computer-Aided AppraisingLike having Mr. Data help you value a propertySlide46

Work with Entire Market DataBradford Technologies, Inc. - The Leader in Computer-Aided Appraising SoftwareSlide47

Market AnalysisBradford Technologies, Inc. - The Leader in Computer-Aided Appraising SoftwareSlide48

Market Trends & ForecastingBradford Technologies, Inc. - The Leader in Computer-Aided Appraising SoftwareSlide49

Analysis DashboardsSlide50

Statistically Accurate Valuations

Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising SoftwareSlide51

Computer-Aided AppraisingWhy do we need it?Computer-Aided Appraising transforms the appraisal process by letting computers do the tedious, manual processes and

by empowering appraisers with analysis capabilities that were never previously available.

Appraiser are

now

able to provide valuation

services to the entire valuation market

.Slide52

OpportunitiesBradford Technologies, Inc. - The Leader in Computer-Aided Appraising TechnologySlide53

Frees Appraisers from the 1004 Box

Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising SoftwareSlide54

HELOCs are Big Business

Its expected to continue

for 2, possibly 3 years

Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising SoftwareSlide55

New Evaluation Guidelines1. Must provide reliable estimate of market value2. Must address

property’s actual physical condition

3. Must address

market factors that affect value

BPO’s are not sufficient because it does not provide a market value

CMA - Competitive market analysis is not sufficient because it does not provide a market value

AVM alone is not sufficient because it does not include an inspection of the propertyBradford Technologies, Inc. - The Leader in Computer-Aided Appraising SoftwareSlide56

Valuation Market ShareBradford Technologies, Inc. - The Leader in Computer-Aided Appraising Technology

AVM

25%

$2.5 Billion

BPO

20%

$2 BillionAppraisal55%$5 BillionAVMs and BPOs traditionally used for HELOC collateral valuationsSlide57

Take Back Some Market ShareBradford Technologies, Inc. - The Leader in Computer-Aided Appraising Technology

AVM

25%

2.5 Billion

BPO

20%

2 BillionAppraisal55%5 BillionIt would be nice to put1 billion dollars into thepockets of appraisersSlide58

Take Back Some Market Share50% of BPO’s is 7.5 million valuations - these include drive-by inspectionsIf 62,000 appraisers divided these jobs evenly, each must do 120 more valuations/year

These jobs pay $125 - $150; Each appraiser could add up to $18,000 to their bottom line.Slide59

Appraiser Evaluation ProcessAppraiser with Market Expertise

It starts with the “brains” of the operation

The AppraiserSlide60

Appraiser Evaluation Process

Third Party

Inspection

Appraiser with

Market ExpertiseSlide61

Appraiser Evaluation Process

Third Party

Inspection

- MLS Sales & Listings

- Public Records

- Aerial Imagery

Appraiser with

Market ExpertiseSlide62

Appraiser Evaluation Process

Third Party

Inspection

Appraiser with

Market Expertise

- MLS Sales & Listings

- Public Records

- Aerial Imagery

Computer-Aided

Appraising TechnologySlide63

Appraiser Evaluation Process

Third Party

Inspection

Appraiser with

Market Expertise

Evaluation

Its really an appraisal !

- MLS Sales & Listings

- Public Records

- Aerial ImagerySlide64

Industry Needs New AppraisersFrom Appraisal Institute – Age of Appraisers:

Mean

Median

Mode

MAI 62 60 64SRA 63 61 64Slide65

Appraiser Trainee OpportunityBradford Technologies, Inc. - The Leader in Computer-Aided Appraising Software

Performed by a machine

Performed by an agent

Appraiser Trainee

can do

these Evaluation-Appraisals

with Supervisor guidanceAdditional Income to firmSlide66

Appraiser Trainee OpportunityBradford Technologies, Inc. - The Leader in Computer-Aided Appraising TechnologyBPO

vs

Appraiser Trainee

Supervisor signature

Full Market Analysis

Property InspectionSlide67

Are Appraisers Ready for the Future?Slide68

What One Appraiser Thinks“Once you learn regression (really learn it) it makes your life as an appraiser so much easier. So much so that you really don’t need that silly manual grid to come up with a credible value opinion.”

Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising TechnologySlide69

What Many Appraisers ThinkBradford Technologies, Inc. - The Leader in Computer-Aided Appraising Technology

It’s the future

and I can't wait

Its nice, but

its not for me

Its the beginning

of the end for appraisers

2500 appraisers surveyed

after “Building Stronger Appraisals Faster “ webinarSlide70

Thank YouAppraisalWorld.com800-622-8727