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Computer-Aided Appraising How New Technology Will Spur Growth in the Appraisal Industry. Jeff Bradford, CEO Bradford technologies, Inc. Computer–Aided Appraising. What is it? And why do we need it?. Computer-Aided Engineering. Helped engineers solve problems that were previously unsolvable.
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Computer-Aided AppraisingHow New Technology Will SpurGrowth in the Appraisal Industry Jeff Bradford, CEO Bradford technologies, Inc.
Computer–Aided Appraising What is it? And why do we need it?
Computer-Aided Engineering Helped engineers solve problems that were previously unsolvable Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Software
Computer-Aided Design Helped architects design structures that were previously not buildable Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Software
Computer-Aided Manufacturing Helped manufacturers produce products that were previously not possible
Computer-Aided Golf Course Design Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Software
Computer-Aided Appraising What 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 valuations
Today… Appraisers have Powerful Form Fillers And a lot of manual work! Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Software
Time to Complete an Appraisal • I 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 hours Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Software
Typical Appraisal Process Beginning Middle End Inspection & Analysis Report Data Gathering Manual Process Manual Process Manual Process Manual Process 4- 6 Hours + Inspection = 1 Day Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Software
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 Software
Appraisal Compliance Issues • USPAP • UCDP, UAD • CFPB • Dodd Frank • Interagency Guidelines • Federal & State Independence Laws Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Software
Why are Appraisers in this Position? Why don’t appraisers already have computer-aided appraising technology?
Appraising is considered an “Art” Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Software
Appraising is considered an “Art” You would never expect a computer to value the Mona Lisa Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Software
Appraising is considered an “Art” We also don’t expect computers to accurately value our home Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Software
But Ever Since 1981… These Black Box property valuation systems have been getting better and better every year. AVM
But Ever Since 1981… Their usage continues to grow AVM
But Ever Since 1981… “Each month, we provide more than one billion AVM values to lenders, brokers, government agencies, marketing firms, consumers and insurance companies”. AVM
Today Valuation is BIG Business Property Valuation has become a Science • Team of more than 50 PhDs, economists, and modelers • Combined with nation’s largest property and ownership database covering 98 percent of the U.S. population • Equals “Good Enough” property valuations
Appraising has to be more than “art” The “art of appraising” has to be augmented by the “science of appraising” Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Software
Big Data-AVM Review Systems Appraisers are being reviewed & scored by systems that utilize massive amounts of data • Data 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.
Big Data-AVM Review Systems These review systems have access to more property data and can process it much, much faster than the appraiser.
Appraiser is at unfair disadvantage Appraising is a “science” Appraising is an “art”
How can we compete ? Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Software
More Efficient Inspections Automatically loads into the forms
We Can Make Process More EfficientBut the Appraiser Cannot Compete AVM Appraising is a “science” Appraising is an “art”
Partner with an AVM? AVMs: Hop on board the train or get left behind? A V M
Artificial Intelligence AVM Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Technology
Artificial Intelligence Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Technology
Artificial vs Augmented Intelligence Computer + VS Computer directed Computer + Human directed Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Technology
Artificial vs Augmented Intelligence The Winner VS + Computer Human directed Strategy Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Technology
Computer-Aided Appraising The Winner VS + Computer Appraiser directed Analysis Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Technology
Computer-Aided Appraising Shortens the Entire Process Data Gathering Inspection & Analysis Report Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Software
Get Rid of This Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Software
Reduces This Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Software
Computer-Aided Appraising • Adds “Science” to the “Art” + Bradford Technologies, Inc. - The Leader in Innovative Valuation Solutions
Closed Black Box AVMs • Valuations Providers • Zillow • Veros • Collateral Analytics • Corelogic • LPS • Many more AVM Bradford Technologies, Inc. - The Leader in Innovative Valuation Solutions
Analytics are open to Appraiser Computer-Aided Appraising opens up the black box and let’s the appraiser drive the process and the analytics Bradford Technologies, Inc. - The Leader in Innovative Valuation Solutions
Computer-Aided Appraising Like having Mr. Data help you value a property
Work with Entire Market Data Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Software
Market Analysis Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Software
Market Trends & Forecasting Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Software
Statistically Accurate Valuations Bradford Technologies, Inc. - The Leader in Computer-Aided Appraising Software