Are you ready for this? It will happen. I just never seem to get the timing right. But for now you are stuck with legacy systems that have certainly gummed up the works. I know a lot of folks would like to blame appraisers. I think it is entirely unfair to blame the technically backwards approach to an appraisal on anyone but the agencies who dictate appraisal policies, practices and procedures.
For any of you who have experienced Uber you likely exit the experience with a “wow, what an obvious solution”. I spent a few days in Miami last year following a business meeting. I rode in BMWs, Mercedes, and a Cadillac. All clean and new. I quizzed the drivers because I was so fascinated. Almost all were real estate agents. Ouch.
I have a friend of mine, a chief appraiser at a large AMC, who told me he spent a weekend going through the Uber process. It was all app driven. He uploaded his photo, his driver’s license and created a mini profile. Then he actually became a driver for the weekend. I don’t think he is considering a career change though.
The appraisal process is driven by the form, for the most part. Guidelines written by the Government Sponsored Enterprises drive the report. One might argue that USPAP is in the “driver’s seat” (do pardon the pun). Remember when Fannie Mae no longer required the Cost Approach? Enough said.
What’s the hold up? There really is only one solution. Valuation needs a single authority. We have far too many entities involved, some with little appraisal expertise, imposing practices, policies and procedures upon the profession. Standards, forms, oversight, policies, if clear, would inspire the public sector to develop technical solutions. Right now we have analog solutions yet we live in a digital world.
How many entities have their hands in the valuation process? So many, I don’t know. Perhaps for the sake of clarity, uniformity and efficiency there should be a single regulator. What I do know is that the system we do have isn’t working so well.
Reengineering can occur once the entire program has been remapped. The current scenario prevents private enterprises, the American entrepreneurship from stepping up and offering cutting edge solutions. Appraisers will always be a part of the solution. It will just likely look much different. And hopefully a much better experience for the consumer.
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