Around every corner, someone wants appraiser’s to buy their technology.
We get techhype – buy our wonderful . . . “Prove your adjustments.” “Bulletproof your reports.”
Technology of computers and especially software. “Buy our most clever delivery product.”
We started with electric typewriters and adding machines. Then calculators (like the hp12c) and fast dot-matrix printers. (Just line up the form exactly . . .) Then office cable networks, where we smashed into each other’s work, and printers which printed the data and the form all at once!
And we got MLS over the modem, at 30bps, instantly, instead in “sold” MLS books every three months. And thermal paper microfiche printers – and later even, “regular paper” machines so we could just staple in the public records directly! Oh the wonder of it all!
And then. And then we could stop trips to the photo developer. It was always three copies of all your comps and subject, including the comps you did not need. It cost you to look beyond five or six “comps,” so we trained ourselves to never go beyond the minimum data needed to get past this appraisal. (And always hold back your “best” comp, in case the lender asked you for “better” comps.) ROV “reconsideration of value” was considered improperly influencing the appraiser, so that you could make the deal to make your commission.
Buy the tech. As the years went by, every technology I can think of, were things appraisers had to buy! Computers, electronic cameras, forms software, even the right to deliver to a customer the product they ordered! “Please sell us your service, and help pay for it!”
We still have to buy or “rent” software technology, even spreadsheets, measurers, or field data entry screens. All of which makes the mechanics of our job easier or faster. (Or replaces us.)
First it’s important to recognize that there are two technology types: Product technologies and process technologies. Product technologies are things to buy, because they are a physical thing. On the other hand, process technologies comprise judgment and competence to support and explain the process.
Historically, appraisers never really had an opportunity to sell technological competence, until now. We have always sold our experience, training, education, and commitment to independence, impartiality, and subjective objectivity — and unbiased opinion.
Things have changed.
Sell the tech. Today, we have the opportunity to capitalize on our knowledge of markets and the valuation process. But it takes competence to sell competence.
We have the opportunity to sell a technology. We have the opportunity to take our old competence, and combine it with new technology. Process technology.
It does take some new learning. It takes an understanding of the new process in the world of big data. The new competency path requires understanding some things: 1) big data; 2) small data; 3) flexible and robust software; and 4) the ability to combine computer power with the new competence.
It’s called “data science.” For collateral, investment, equity users, it’s called Evidence Based Valuation (EBV)©. This we teach: The theory, the analytics, and the enhanced judgment for sale.