Technology that creates new business
Jim Simmons, Research Fellow
As residential appraisers, we develop a robust set of skills. We become familiar with local building techniques, codes, zoning regulations, and of course property values. We become part time cartographers, database administrators, and marketing agents. Even the most straightforward assignment requires a working knowledge of construction, market research, analyses, photography, and report writing. Combine this with the day-to-day requirements of computer expertise, accounting, and administrative responsibilities and it's no wonder where the time goes.
As a la mode Labs Research Fellows we are tasked to conceive projects that will ultimately help appraisers in one or more of these areas. I may say from personal experience and without reservation we all have appraisers' best interests at heart. The trick though is to step back and take in the big picture. While we all have our pet projects, the greater goal, as I see it, is to help as many appraisers as possible. I have attempted to do so from the start of my tenure here. I think we all have.
Therefore, with this in mind, it occurs to me one of the best ways to help the most appraisers is to provide a way or ways to leverage the skill set we have to provide services other than standard appraisal fare. To illustrate, over the years I have conducted a large rent survey for our local Housing Authority, taken photos and input property data for a commercial research firm, manage an on-going appraiser Co-Op sales data service, and I am currently repairing misinformation in the local MLS database.
We, in the labs, are currently in the process of developing an interface allowing data to be merged from various sources directly into WinTOTAL forms. Additionally, labs projects will facilitate the sharing of data between appraisers and regression analysis of that data. Also, much emphasis is being placed on integrating GIS and GPS functionality into the report process. The roll out of DaVinci will usher in a new era of field gathering tools. By extension these enhancements will allow the rapid flow of property data to and from our appraisal software. If we were to combine these elements with the functionality of the Comps Import Wizard (modified) and some suitable reports we would have, in essence, an appraiser-based MLS.
Regression analysis combined with adequate sales data could be used to effectively compete with appraisal alternatives. Other services either presently purchased by appraisers or sold at the expense of appraisers could be turned into revenue generators for appraisers. The object being to create profit centers where there are currently only costs or lost opportunities to appraisers.
If there are those of you who have personal knowledge of, or are engaged in rendering services other than standard appraisal activities which leverage your appraisal skills I'd like to know about it. The idea is to create an “exchange portal” with a menu of services provided by the a la mode appraisal community that currently does not exist in any other organized format.
As the real estate environment evolves there may become a time when the majority of an appraiser’s income is derived from unconventional appraisal related activities. I would venture to say this is already the case with some appraisers. Many, if not most, appraisers are unaware these opportunities even exist. Conversely there are undoubtedly many potential users of appraisal related services who use other, probably less qualified, vendors to provide their services. Some appraisers are either too busy with their day-to-day activities or simply don't care to take on any other type of work and that's okay. But for some (perhaps most), if presented with the opportunity and given proper instruction this may be a means to increase personal revenue or provide needed flexibility in one's office workflow.
Our industry is evolving with the real estate environment, and as it does so it must adapt to the new challenges we face. First we must try to identify or anticipate the needs of our clients. An alternative to this is to create needs and services for clients that currently do not exist. It is certainly easier, and probably is human nature, to become reactive instead of proactive. In any event I would highly recommend that everyone keep an open mind and take a chance on new opportunities as they present themselves. While every special project that I have taken on over the years has not been as profitable as I had anticipated they have all been interesting and have provided me with a great learning experience. It is my sincere hope that I will be able to create some unique and challenging opportunities for you in the future.
I have always been impressed by the diversity of the backgrounds from which appraisers come. Yet once engaged in appraising I’ve never seen a group so interested in “talking shop.” We, as appraisers, are paid to provide opinions. As such we tend to become opinionated. We are required to be independent in the development of those opinions. This leads to division and isolation.
I believe, if provided an equitable environment and given the opportunity we could all come together as an appraisal community and all prosper. It will be my overriding objective during the second half of my tenure in the labs to enable as many appraisers as possible to benefit from our efforts. I realize this is a long-term objective and we have a short-term here in the Labs. We can, however, lay the foundation that may ultimately lead to an open community of appraisers, exchanging ideas and even helping each other build their empire.
This concept should not be confused with the idea that a la mode, or any other vendor, should provide jobs for appraisers. Rather we would ask them to create the tools and support an environment by which we could exchange information and resources for those of us who choose to participate. Based upon what I have experienced so far I’m sure they would do so. I write this article to provoke thought, invite comment, and create talking points. Together we can do great things. Let’s make it happen.
