If you are within your software maintenance period, you should have already received an email with a download link to the update. If not, please call your account manager at (800) 622-8727.

Want to Learn More About AVMs? 

Do you want to learn more about AVMs?

If you are in the Houston area, plan on attending the NAMA Technology Conference on October 23 at Clarion Hotel. Jeff Bradford will be speaking on Saturday on the use of AVMs and other new products and technologies.

And if you're in the San Francisco area, stop by our booth #1048 if you’re planning to attend the MBA’s 91^st Annual Convention & Expo, October 24-27, at the Moscone Center. This is our first time at the MBA event and we’re looking forward to it. For more information, please visit http://events.mortgagebankers.org/91st_annual.

AVM Appraisal Buzz Article with Jeff Bradford and Darius Bozorgi

And if you have not read enough about AVMs, here is a reprint of the AVM article that appeared in the Appraisal Buzz.

Bringing the Power of AVM Technology to the Appraiser's Desktop
An Interview with Jeff Bradford, President of Bradford Technologies and Darius Bozorgi, CEO of Veros Software.

Bradford Technologies and Veros have partnered to bring the power of AVM technology to the appraiser’s desktop. This is a first for the appraisal industry. They are offering free trial valuations so appraisers can experience the value of this technology first hand. What follows is an interview with Jeff Bradford, president of Bradford Technologies and Darius Bozorgi, CEO of Veros Software.

Buzz: Jeff, with all of the negative publicity about AVMs, why did you decide to integrate one into ClickFORMS? Aren’t you concerned about the negative backlash from appraisers?

Bradford : AVMs are not just for lenders anymore. Today, any consumer can pay $30 dollars and get some very sophisticated property analysis. We think appraisers, who are the final authority on valuations in this country, should actually be the first ones to take advantage of this information. We are not breaking new ground here. We are playing catch up to the consumer. When I think about it, I’m surprised it hasn’t happened sooner. A lot of data gathering, data filtering, and data analysis occurs to produce a valuation. Why not put this analysis power in the hands of skilled appraisers.

Buzz: What feedback have you gotten so far from appraisers?

Bradford : Ironically, we have not received any negative feedback from appraisers. The negativity has come from our competitors. They are writing about us in their newsletters, claiming we are partnering with the enemy. Although we appreciate the publicity, they are feeding the fears rather than actually educating appraisers on how to grow their business in this new environment. AVM technology is not going away and the only effective response is to find out how you can use it for your benefit.

Buzz: So why is there such a fear of AVMs by the appraisal community?

Bradford : The AVM has been portrayed as this black box that spits out a number that lenders blindly accept. The truth is that an AVM is just another data analysis tool that, if used properly, can help the appraiser in rendering an opinion of value. And the speed with which AVMs analyze large amounts of data can significantly reduce the time it takes to produce the opinion of value.

Buzz: So, what kind of benefits can an appraiser gain from AVM technology?

Bradford : Let me explain it this way and then we’ll let the reader decide for themselves how it might benefit them.

To estimate the value of a property, an AVM program has to gather hundreds, if not thousands, of property records. It then sorts, filters and analyzes them to arrive at the most similar. Then it does a sophisticated analysis and in some cases multiple analyses, on the most similar properties to estimate the subject’s value. An appraiser does something very similar, but on a smaller scale. And it often can take hours to do. Now imagine if the appraiser had a tool that could search thousands of records, sort and analyze all those records and come up with the six most similar comparables, produce a time trend analysis on the neighborhood, and then perform a complicated analysis that estimated the subject’s value. All in fewer than 10 seconds and the only thing the appraiser had to do was type in the property address. This is a huge head start!

Do you think the comps the AVM selected could be a good starting point for the appraiser? Do you think the AVM might uncover some comps missed if only a manual search was performed? What about the AVM’s estimated value? That might be a good bench mark or check point for the appraiser? How about the time trend analysis of the neighborhood? Could that help in making adjustments? How about getting the sales history instantly? All this is good information and in the hands of a professional appraiser, it can help them do their job faster and better.

Buzz: Darius, what other benefits do you see for the appraiser?

Bozorgi: I think the important point here, besides the benefits Jeff mentioned above, is that an AVM takes raw data and turns it into information. Information that helps appraisers do a better job. What Jeff and I are doing is making that information easily accessible to appraisers.

I have spoken to many groups of appraisers and have sought out their opinions and input regarding the future of collateral valuation. Although a very small number seem to be very resistant to any type change, the vast majority of appraisers I have talked to recognize that what we all offer individually adds up to the overall collateral valuation solution. These alternatives – and I refer to all collateral valuation choices – may or may not be appropriate in a variety of different and competing circumstances. I would think that one of the parties to weigh-in on these decisions should be a qualified appraiser backed by local area expertise. I certainly agree with Jeff when he says that AVM and similar technology is here to stay – that train left the station long ago. In my mind, the real question is whether appraisers, as I believe most do, will want to be an integral part of the decision process, or have these decisions made for them by their customers and other market forces at play.

Buzz: Sounds like the turn times to produce a report could be significantly reduced. Is this the case?

Bradford : Yes. It definitely can reduce the data gathering and data filtering phase of the valuation process. It allows appraisers to focus on what they do and know best.

Buzz: Darius, if this is the start of making this information and technology available to appraisers, what do you see down the road?

Bozorgi: Most AVM providers would agree that we are not out to replace appraisers. I do not believe AVMs or their related services will ever put appraisers out of business. Quite the contrary, these and future tools can serve to enhance and expand the business of what I consider to be the next-generation appraiser. Many appraisers I talk to certainly do not relish what they describe as common stereotypes of appraisers as form-fillers. We offer the tools that can help eradicate these stereotypes and promote the appraiser as what I believe most already consider themselves to be – a local valuation professional offering expert opinions on value.

We have now integrated our AVM technology into ClickFORMS allowing the appraiser to perform and consider many of the items that Jeff described. In the future, we will add even more robust review features, a more interactive exchange between AVM and the appraiser, a host of indexing tools that provide objective support for things like market rate adjustments, and detailed analytics that provide support for other adjustments such as the value of a garage in a specific locale. All of this is being developed with an eye towards placing these tools in the hands of a qualified real estate professional. How these tools will most effectively be integrated into a full-service collateral valuation offering is up to the discretion and skill of the individuals using them.

Buzz: Is this technology cost effective for the appraisers today?

Bradford : Yes. How much time do appraisers spend determining which comps to use? Finding the subject’s sales history? Determining the pricing trends of the neighborhood? A lot of time is spent in research, sometimes hours. If you can cut that time down to seconds, did you gain some productivity? Absolutely!

Appraisers can look at this technology as an investment. Assume you spend an hour doing comp analysis and research on each appraisal and you do 300 appraisals a year. If you can cut that hour down to a few seconds, you will save up to 300 hours of work. What can you do in 300 extra hours? That is over seven weeks. If you make $75 an hour, in seven weeks, you could earn an extra $22,000. If each analysis cost $20, your return on investment would be over 300%. That’s a pretty good return in my book.

Buzz: Jeff, there are a lot of AVMs out there. Why did you partner with Veros?

Bradford : Quality! Veros is an innovative company and they pride themselves on providing a quality product. If I was going to put AVM technology into the hands of our appraisers, they were going to have the best. It’s as simple as that.

Buzz: Tell me about this free trial valuation you are offering.

Bradford : This is a first for the industry and we know there are skeptical appraisers out there who don’t believe AVM technology can help them. So, we would like to invite all appraisers to try it for themselves. For a limited time we will be offering trial property analyses. I would encourage everyone to experience first hand the richness of the information and decide for themselves if it can benefit their appraisal business. I think they will be pleasantly surprised.

I would suggest that anyone interested, should try it out on their next appraisal assignment. Just give us a call at (800) 622-8727 and ask for the Trial Valuation Package or visit our website at www.bradfordsoftware.com. It takes a few minutes to get setup, but only a few seconds to experience for themselves how AVM technology can dramatically improve their profits.

Buzz: Thank you very much.

Bradford : In closing, I would like to mention that we will be speaking on this technology at the Orlando Valuation 2004 conference and would like to invite all interested appraisers to attend the conference.

Have a Good Weekend Everyone 

Have a good weekend everyone. Drive safely while you're out inspecting. Don't forget to tell your friends about ClickFORMS.