Who Doesn't Need an Appraiser?
Some Rhetoric from Appraisal Firewall™ on the Purchase of
a la mode by CoreLogic™
Some Rhetoric from Appraisal Firewall™ on the Purchase of
a la mode by CoreLogic™
Like many of you, we were surprised and saddened to see independent appraisers take another hit with the purchase of a la mode by CoreLogic™. A good portion of the appraisal reports delivered through our Appraisal Firewall software to lender clients are from appraisers that use the a la mode products to develop their reports.
Why do independent appraisers take another hit with this transaction?
Our view is that you’re delivering the data you create from scratch to your competitor: a company that owns and operates two AMCs and a plethora of AVMs. As a provider of property data, we can assume that CoreLogic’s purchase of a la mode now gives them the ability to reuse your data in their products. This strengthens your competitor, who likely wants to supplant independent appraisers with data. This is a trend we are seeing in other places too.
As Fannie and Freddie attempt to give out more Property Inspection Waivers with their Day 1 Certainty™ program, it seems apparent that more appraisals will be developed by stored data in giant databases instead of an actual visit to the subject property. We are certainly not there yet, but CoreLogic is supporting this trend. After all, per their description on NYSE, they are a “provider of consumer, financial and property data, analytics, and services to business and government.”
Property is dynamic: appraisers know this better than most. Property value appreciates and depreciates constantly. We believe that nothing can substitute a physical, educated human presence at the property. Databases can’t determine if the house has been flooded, needs a new roof or was damaged during a natural or man-made disaster. The value of a property can change drastically overnight with a kitchen fire, a broken water pipe, or a leaking toilet. Opposite but equally true, databases cannot determine the value of improvements made by the owners. Did they add solar power? A new bathroom? Or remodel a kitchen? These changes can only be discovered and properly valued by an educated, physical visit to the house: by an appraiser. This is how the integrity of data is maintained. Who can really be confident in a valuation without an appraiser?
Independent appraisers do work that no database can replace. And yet, the appraisal industry keeps moving – albeit slowly – toward supplanting real estate appraisers with data. It’s frustrating to think about the reduction in quality our industry is moving toward.
Why are we chiming in on this issue?
Since the inception of Appraisal Firewall in 2007, our software and our company have always been fiercely pro-appraiser independence. It’s our niche. We are not an AMC. We believe that there is no better way to value a property than to have an educated, physical presence there.
Our software connects appraisers like you with your lenders directly, so that your clients’ orders go directly to you, and appraisal quality remains at its peak. You can message your clients directly. You deliver your completed reports to your clients directly. You receive payment from your clients. You negotiate your fees with your clients. In short, your lender clients manage their own appraisal process with you.
So, why are we telling you this?
We want to make sure that you know who we are, where we stand, and how we support appraisers. Some appraisers don’t have too many lender clients any more. For those of you that do, make sure to tell lenders about Appraisal Firewall, and how we support and value the independence of the appraiser – and the integrity of housing data – with our web-based appraisal ordering software.
Appraisers can bring their lenders to Appraisal Firewall and enhance their lender relationships. Lenders get efficiency and compliance with all regulatory compliance requirements. Appraisers work with their clients to set their fees, and get direct relationships with their clients.
Want to learn more about us? Visit our website, or email us at Sales@AppraisalFirewall.com.
Why do independent appraisers take another hit with this transaction?
Our view is that you’re delivering the data you create from scratch to your competitor: a company that owns and operates two AMCs and a plethora of AVMs. As a provider of property data, we can assume that CoreLogic’s purchase of a la mode now gives them the ability to reuse your data in their products. This strengthens your competitor, who likely wants to supplant independent appraisers with data. This is a trend we are seeing in other places too.
As Fannie and Freddie attempt to give out more Property Inspection Waivers with their Day 1 Certainty™ program, it seems apparent that more appraisals will be developed by stored data in giant databases instead of an actual visit to the subject property. We are certainly not there yet, but CoreLogic is supporting this trend. After all, per their description on NYSE, they are a “provider of consumer, financial and property data, analytics, and services to business and government.”
Property is dynamic: appraisers know this better than most. Property value appreciates and depreciates constantly. We believe that nothing can substitute a physical, educated human presence at the property. Databases can’t determine if the house has been flooded, needs a new roof or was damaged during a natural or man-made disaster. The value of a property can change drastically overnight with a kitchen fire, a broken water pipe, or a leaking toilet. Opposite but equally true, databases cannot determine the value of improvements made by the owners. Did they add solar power? A new bathroom? Or remodel a kitchen? These changes can only be discovered and properly valued by an educated, physical visit to the house: by an appraiser. This is how the integrity of data is maintained. Who can really be confident in a valuation without an appraiser?
Independent appraisers do work that no database can replace. And yet, the appraisal industry keeps moving – albeit slowly – toward supplanting real estate appraisers with data. It’s frustrating to think about the reduction in quality our industry is moving toward.
Why are we chiming in on this issue?
Since the inception of Appraisal Firewall in 2007, our software and our company have always been fiercely pro-appraiser independence. It’s our niche. We are not an AMC. We believe that there is no better way to value a property than to have an educated, physical presence there.
Our software connects appraisers like you with your lenders directly, so that your clients’ orders go directly to you, and appraisal quality remains at its peak. You can message your clients directly. You deliver your completed reports to your clients directly. You receive payment from your clients. You negotiate your fees with your clients. In short, your lender clients manage their own appraisal process with you.
So, why are we telling you this?
We want to make sure that you know who we are, where we stand, and how we support appraisers. Some appraisers don’t have too many lender clients any more. For those of you that do, make sure to tell lenders about Appraisal Firewall, and how we support and value the independence of the appraiser – and the integrity of housing data – with our web-based appraisal ordering software.
Appraisers can bring their lenders to Appraisal Firewall and enhance their lender relationships. Lenders get efficiency and compliance with all regulatory compliance requirements. Appraisers work with their clients to set their fees, and get direct relationships with their clients.
Want to learn more about us? Visit our website, or email us at Sales@AppraisalFirewall.com.