May 8, 2020
It’s safe to say there’s a lot of uncertainty in the global economy due to the spread of COVID-19. From Reopening the real estate market to figuring out how to navigate appraisals, professionals in the Real estate appraisal industry are looking for some semblance of normalcy to stand on. Fortunately, as the pandemic has slowed and life is getting back to normal, the opportunity to plan for the near future has presented itself.
And while the housing market will continue on with a sense of ambiguity in the short-term, real estate appraisers will be able to stay ahead of the curve, adapting to market conditions in order to provide critical analysis within reasonable timeframes.
Technology or Tradition?
In the real estate appraisal field, nothing beats a hands-on inspection. And while technology has helped everyone stay connected, fed, entertained, and safe during the spread of COVID-19, using it for home appraisals isn’t preferred.
Interior inspection software used by homeowners may be an acceptable temporary choice for information gathering. However, it can be less reliable than an interior observation conducted by a credentialed real estate appraisal professional during normal market conditions.
Technology can provide efficiencies and support of conclusions for appraisers, but still comes in second best to in-person observations. While photos and videos help paint a picture of a home’s current condition, they do not reveal the complete details of a property’s condition.
Real estate appraisers can use their senses to spot areas of opportunity and get a complete understanding of a property. From hearing floors creek to sniffing out mildew, feeling out stuck windows to spotting leaks and cracks, this natural way to inspect a house is preferable.
Moving forward, the real estate appraisal market could see more technology integrated into its operations. However, this could pose more risks when it comes to potential exposures. Depending too heavily on technology can open up various risks and the potential to miss elements that need to be scrutinized in order to keep future residents safe.
This is why traditional real estate appraiser duties should stay the preferred choice of investors and home sellers, allowing them to get the same true-to-life look at a property. Doing this will provide a guarantee that all areas of opportunity are examined and the home is properly priced.
About Associations Liability Insurance Agency (ALIA)
The ALIA Team (part of the Riverton Insurance Agency Corporation), specializes in helping real estate professionals find the affordable and comprehensive liability insurance they need, without the hassle. ALIA dates its roots to 1991 with the founding of FREA, Foundation of Real Estate Associates. In 2013, ALIA was created to work with multiple insurance companies thereby broadening the portfolio of products to customers. For more information about our products and services, contact us today at (800) 882-4410.