- Jan 27, 2006
- Professional Status
- Certified General Appraiser
In a court settlement, government lawyers said the National Association of Realtors could no longer discriminate against Internet-based agents by blocking them from the group’s multiple listing service, a database of for-sale properties.
Except for saying it depends on who "us" is, and not agreeing that the people who use AVM's to develop appraisals aren't "appraisers" - I'd call your post a good example of asking a question and answering it. Your analysis sounds right to me. It has been assumed across-the-board that going forward, regional and national property databases would improve in accuracy, making the results of AVM appraisal more accurate.How will this effect the appraisal industry? It seems this action will eventually allow AVM, Z's, Zillow and other non traditional valuation service providers the access to build a superior database. Eventually, consumers will demand sales along with the listings for comparison shopping. With sales data from the MLS and public information, lenders would rely more heavily on Automated models instead of appraisers when quality of data is significantly improved with full MLS access. We might save with cheap MLS access in the short term but it may cost us the mortgage business in the long run.
Interesting but not surprising. The NAR has long been lobbied to protect the antiquated business practices and over priced services its members provide.
Time for it to move into the 21st century and have a little competition. No one needs a Realtor to decide which houses to show a customer, the internet is much more efficient to let the customer sort thorough the listings and decide which ones to see.
The Realtor can then earn their money by writing the contract and handling the administrative details. And commissions will, and should be lower because they are providing less service.
Sounds like an idea touted in an AI White Paper from several years ago: scope of work - range of services.But many other franchises, like Century 21, have learned that the internet has changed things. They not only have kept their full service brokerage, but also started a discounted "assist to sell" kind of service. The smart brokerages will embrace the internet, change to specialize as more of an ad agency function, and offer services A La Carte.