1 / 8

Integrating automated valuation models (AVMs) with valuation services to meet the needs of

Integrating automated valuation models (AVMs) with valuation services to meet the needs of UK borrowers, lenders and valuers Mary Lou Downie & Gill Robson School of the Built Environment Northumbria University Newcastle upon Tyne Funded by the RICS Education Trust

cyrah
Download Presentation

Integrating automated valuation models (AVMs) with valuation services to meet the needs of

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Integrating automated valuation models (AVMs) with valuation services to meet the needs of UK borrowers, lenders and valuers Mary Lou Downie & Gill Robson School of the Built Environment Northumbria University Newcastle upon Tyne Funded by the RICS Education Trust & RICS Residential Professional Group

  2. Research background and issues Where we began: AVMs, an international perspective, Downie & Robson (2007) for the CML This took us to AVMs in the UK The research focus: Integrating AVMs with valuation services to meet the needs of UK borrowers, lenders and valuers • Lenders’ valuation policy & valuation process management • Current & future AVM use by lenders & valuers • Implications for borrowers Education Trust

  3. Using AVMs: how do they impact on the RICS? • RICS professional standards • Education & training for valuers • Information for borrowers • Liaison with stakeholders Education Trust

  4. Research conducted 2008-9 • International literature review • Interviews: • Valuation & panel management companies • Credit risk & valuation managers at Building Socs & Banks • CML, AVM companies, PI insurers • Online survey • RICS Residential Professional Group: 473 responses • Correspondence with consumer groups Education Trust

  5. What we found • Low risk lending + multiple other uses • AVM expertise concentrated in lending organisations • 22% of survey valuers have used an AVM, 64% have not • 39% want to use them to supplement valuations, 28% do not • 72% expressed willingness to learn more about AVMs • Negligible acknowledgement of AVMs in consumer information • Valuation fee transparency Education Trust

  6. Non- inspection Inspection Valuation and survey levels Does RICS guidance match current valuation & survey? Possible future Research Findings: Current Valuation & Survey Current valuation and survey Detailed consumer advice No detailed consumer advice No detailed consumer advice Time/cost Level 3 Signingfor FSA Valuer checked AVM Level 2 AVM Level 1 Drive by New Desktop Not in Red Book In RICS Red Book Education Trust

  7. How might the RICS respond to IT enabled residential valuation? • Work with stakeholders on a selection from this menu: • Limited response • Issue policy statement about AVMs • Amend Red Book • Information Paper • Improved consumer information • Education and training Education Trust

  8. Any questions? Time/cost Level 3 Signingfor FSA Valuer checked AVM Level 2 AVM Level 1 Drive by New Desktop Education Trust

More Related