At the heart of the debate surrounding appraisal modernization is lack of industry modernization over many years and fear—fear that technology will reduce or eliminate the role of appraisers, according to Opteon CEO Chris Knight.
“The world has moved into the digital realm, and customers are expecting faster access to information and rapid accurate results,” Knight told Valuation Review. “However, fast appraisals don’t need to come at the cost of the appraiser’s job. In fact we believe strongly that whilst there is definitely room for alternate products, appraisers are key to ensuring a fair, just, and accurate housing finance and property sector.
“The accuracy and reliability of AVMs can vary widely depending on the specific algorithm and data set being used,” Knight added. “There is a concern that AVMs may not be able to properly account for unique characteristics of a property, such as its condition, location, and local market trends. Some experts also worry that the data used to train the models may be biased or inconsistent, which would result in wildly variable results.”
Read the full interview here.