The process of real estate valuation has changed in recent years, due to the increased amount of data and the technology to process it. The COVID-19 pandemic has accelerated that process.
Are online valuations reliable? Do the algorithms adequately weigh subjective aspects that influence the market price of the property?
Let’s look at 3 of the main developments in valuation and appraisal services:
ADOPTION OF MOBILE TECHNOLOGY BY APPRAISERS
Although the traditional valuation process has not changed dramatically, appraisers are increasingly integrating mobile technology into their practices, improving their workflow and saving time.
The new applications are designed to shorten valuation response times by streamlining the appraiser’s daily tasks and rewarding their activity.
By digitizing tasks that were previously done manually by phone or email (scheduling appointments with the owner, incorporating updated data), appraisers create a better experience for the buyers, sellers and agents they work with.
INCREASING THE RELIABILITY OF ONLINE VALUATIONS
Confinement has transformed the home buying process. The need for social distancing makes it more difficult to develop tasks such as face-to-face prospecting of a real estate property.
The sector has been able to adapt, with the help of online meetings, virtual tours and measurement and calculation applications, which help to value properties remotely,
Automated valuation services, being interactive, allow clients to view photos, maps and other data on the spot, giving them a virtual view of the condition of the property and the witnesses in the area.
Automated valuation services offer faster response times and lower costs.
The reliability of the resulting information remains in doubt, since despite the fact that many parameters are updated, the weighting of these parameters and the use of an algorithm that includes subjective aspects, determine that the result is a value that reflects the reality of the local real estate market.
BEST MARKET INTELLIGENCE
The historical problem for real estate professionals is the diverse sources of information in the real estate market, which use different ways of obtaining data and rules when dealing with it.
The most reliable sources are based on closed transactions, with a certain closing price, but usually these data take up to 3 months to become public.
Agencies that offer immediate information, such as real estate portals and their monthly reports, are based on sales prices, which are far removed from the reality of closing operations.
Once the data from Real Estate Professionals, can be managed with more agility, it will be possible for users to access detailed and realistic information on the trend of real estate prices in the area and the property that interests them.
With that information, accessible, immediate and realistic, it is possible to have better information about when to sell and at what price.
On the part of the buyer, where to buy and what offers to launch. It also facilitates the financing approval process. In short, a more agile and reliable process.
PROPTECH OF REAL ESTATE VALUATION
Numerous technological companies dedicated to obtaining online valuations of properties, which offer data to generate reports and dashboards that help in the decision making process.
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