Story in the Financial Revolutionist
For example, there’s a lot of talk right now about “robot appraisals,” where automated valuation models (AVMs) replace conventional appraisals. But it’s not an either/or scenario, says James Marshall, director of real estate analytics products at Clear Capital.
“The rise of big data and increased computing power has made AVMs much more accurate, and their effectiveness and cost-friendliness adds to their popularity,” he said. “But no property is exactly alike, so the one-size-fits-all approach to property valuation just doesn’t work. The real estate valuation industry must also consider the human element. For example, the special characteristics in a property — like a living room’s atmosphere, the property’s view, or the neighborhood’s ‘feel’ — are, with today’s technology, still imperceptible to AVMs.”