Appraisers are cooked - HouseCanary just won

[Mejappz]

If House Canary in a coal mine wants to compete with appraisers. They should have to comply with USPAP.

 

[George Hatch]

Their problem is exactly the same problem that appraisers and BPOs and every other form of valuation has - qualifying the data well enough to use it.

The eggheads either don't understand or refuse to accept the fact that 90% of the time we spend on the SR1 side is spent qualifying the specifics of the property and sale transactions of the subject and each of the comparables we end up using. It takes time to drive out, inspect and do the rest of the field work, and collect the data at the city for zoning and verifying sales to whatever extent we verify them and so on.

Most of the other 10% is spent on the research to get to those last few direct comparables, not actually analyzing them for their value. That analysis is next to the last step, just before the final reconciliation. I'm 100% sure that there are appraisers who may not be spending more than about 5 minutes doing what the AVMs specialize in - actually analyzing and reconciling for value. With some appraisers the research and qualification of the data comprises nearly 100% of their SR1 time/effort when they're resorting to "the list" for their adjustments.

Then, most of the time/effort on the SR2 side is user-driven documentation, not analytical in any way. If the users had the same reporting requirements for the AVMs and BPOs that they have for the appraisals those other vendors would be spending the same amount of time/effort and cost as we do to meet those expectations.

 

[J Grant]

Try our PLATINUM INSTA VALUATION ! We guarantee it's accuracy, awesomeness, and lightening speed is a billion times faster, a zillion times better, and a trillion times more accurate than those SLOW, EXPENSIVE, PRE HISTORIC ERA APPRAISALS

 

[Eli]

HouseCanary raises $65 million to continue automating real estate appraisals

HouseCanary, a provider of software and analytics that specializes in appraisals, announced this week it raised $65 million in its Series C funding round.

www.housingwire.com

From the CEO, Jeremy Sicklick:
"Reliably automating home valuations replaces a two- to three-week human appraisal process with instant, actionable valuations at a fraction of the price,” Sicklick said. “Consumers and institutional investors buying homes as well as financial institutions providing mortgages demand this, and we power it across America’s housing market."

won what? A lawsuit? It is coming. They won't be the only defendant. However they put their cherry on top. They will be in it. From a legal standpoint and antitrust law, it's gonna get ugly. Lawyers are not stupid for the most part. Appraisers are not stupid either for the most part. A downturn will come. I hope it rectifies before then, but it will rectify then on back tracking.

 

[Mr Rex]

Zillow is accurate and Zaio was the next best thing since sliced bread. I'll buy a new high end Disto on this "news".

 

[alebrewer]

won what? A lawsuit?

That was sarcasm...

 

[Cob]

I've been hearing appraiser's are doomed and computers are going to take our jobs, like the Dusty Rhodes Hard Times promo since I started appraising in 2001 and my old boss said he has heard the same since mid 1980's.......

 

[ucbruin]

Eventually AI will but not in my appraisal lifetime....

 

[Econobot]

So what does 65 million get you? Alot of computers and even more data....to start.

 

[Terrel L. Shields]

Aren't those the same bozos that showed their regression model was so good that the SF adjustment was between $35 and $110 or so?