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2016 Predictions for the Appraisal Industry

At Bradford Technologies, we are always looking for new trends to see what the future might have in store. As many of you know, we’re located in Silicon Valley, so we usually get a preview of new ideas and technology well before the rest of the country does. So straight from the capital of technology innovation, here are the Top 10 appraisal related predictions for 2016.

Prediction #10: Lenders will start to adopt a new valuation product that allows the borrower to submit their own property inspection photos. Appraisers will be able to authenticate these photos and produce a HELOC collateral valuation with a turn time of less than 4 hours.

Prediction #9: Large appraisal firms will start to realize that having a steady inflow of appraiser trainees is critical to their future and will start investing heavily in building their own proprietary training programs. These firms will start to compete on the quality of their training programs to attract new, as well as, experienced appraisers to join their firm.

Prediction #8: Aerial imagery technology will take a leap forward with companies developing the ability to analyze aerial imagery and produce a quantifiable condition score. This could become another headache for appraisers, as reviewers are willing to pay for this technology and start to second-guess appraisers condition assessment. Conversely, it could become an opportunity for appraisers to further support their assessments and value conclusions.

Prediction #7: Big Data will continue to be a buzzword in 2016, but the value of having the appraiser interpret and filter the results into actionable information will become more and more evident as the limitations of Big Data become understood. This will make the appraiser or valuation analyst far more valuable in the collateral valuation process.

Prediction #6: Traditional appraisal methodologies will start to come under fire as Big Data Valuation Analytics start to identify and incorporate influences that can quantify the appeal of a property. These additional influences will not be able to be handled in the traditional grid, causing a conflict between the “art of appraising” and the new “science of valuation.”

Prediction #5: Appraisers will start to see lenders contract with home inspection companies to perform interior inspections with the appraiser incorporating the inspection results in their analysis to produce a faster, less expensive appraisal report.

Prediction #4: Appraisers discovered the power of coalitions in the past years and will start to band together in similar fashion to create common resources, such as shared regional databases, that allow them to compete with the Big Data valuation systems.

Prediction #3: There will be an increase in the number of Web-based products for appraisers. The traditional form filling-software vendors will introduce Web-based versions of their applications. “There’s an app for that” will be a common phrase in the industry as app development becomes easier, quicker and, cheaper allowing many new vendors to offer unique solutions to appraisers.

Prediction #2: Workshops, seminars and, webinars on valuation analytics will proliferate as many appraisers start to seek out education and solutions to meet their desire to analytically support their appraisals.

Prediction #1: 2016 will be a turning point for appraisers, as the majority starts to add analytical support to their reports for their comp selections, adjustments and, value conclusions. This will raise the bar for reliable, trusted appraisals and will once again be recognized by the financial community as the “gold standard” in valuation.

In summary, 2016 should be a very good year for the appraisal industry and for all appraisers who take advantage of the opportunities that open up in the coming year.

Best Wishes for a Prosperous and Happy New Year.

Jeff Bradford

P.S. One last prediction for 2016. This one comes from, Fortune.

This month, Ford announced it has partnered with Google to develop a self-driving vehicle. In 2016, Apple will buy Tesla and announce plans to deliver an electronic car by 2019. With over $200 billion cash on hand, the iPhone-maker has more-than ample resources to absorb the purchase, especially now that some of the bloom has come off Tesla’s once-rosy stock. In addition to its automobile know-how, Apple gets access to Tesla’s battery technology, which CEO Elon Musk claims can help change “the entire energy infrastructure of the world.” Of course, Apple would also get Musk—a worthy heir to Steve Jobs’ “think different” legacy and ideally suited to be Apple’s futurist, chief technologist and CEO-in-waiting.

Have any comments or would you like to submit content of your own? Email comments@appraisalbuzz.com

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