Judgment in valuation analysis is not needed — so they say — so long as the algorithm is right. So long as the algorithm is right . . . For appraisers, this means the valuer has identified a good scope of work. For a researcher, this means an investigation path is identified – a hypothesis. […]
AVMs (Automated Valuation Models) are often touted as something appraisers should understand and do more of. This is a problem of words. “AVM” is not descriptive of a formula to calculate value. It is an industry. Each company in the industry does use algorithms, formulas, and calculations to predict (estimate) value. The use of the […]
There will soon be no need for residential appraisers. I remember years ago, doing education for my merging AIREA/SREA chapter(s) in San Diego. AVMs were just coming to our attention. I invited a MAI who happened to also be a PhD in economics, Phil Mitchell. The room was full. Someone asked about those “automated algorithmic […]