Real estate appraisal is experiencing significant shifts in its profession. These trends are reshaping it. This article will discuss some of these key changes and their implications for real estate appraisers.
Increased Demand for Appraisal Service
A major trend in real estate appraisal is the increasing demand for appraisal services. This is partly due the increasing demand for appraisal services. A rise in mortgage applications as well as refinances has been caused by the COVID-19 epidemic. These require appraisals.
Appraisers are growing their businesses and adding staff to meet increasing demand. Others are also investing in new technologies that will streamline the appraisal process, improve accuracy, and increase efficiency.
Technology
Technology is changing the profession of real estate appraisers in many ways. Appraisers can work more efficiently and remotely using cloud-based platforms and mobile apps. New software programs are also being developed that can analyze large volumes of data in order to assist appraisers in making accurate valuations.
The use of drones is one technology trend that appraisers are increasingly using. Drones can provide appraisers with an enhanced view of the property and its surroundings by taking high-quality aerial photographs. This is particularly useful when it comes to valuing large properties, or properties that are located in remote areas.
Appraisal Regulations Updates
Federal and state agencies set regulations and guidelines for real estate appraisers. These regulations have undergone changes that have changed the way appraisals work.
Fannie Mae adopted new appraisal guidelines in 2021. To ensure accuracy in their valuations, appraisers must use a variety data sources and analysis software. Appraisers must also be more transparent about their methods and give detailed explanations as to why they reached their conclusions.
The new rules pose some problems for appraisers. They require more paperwork and have higher appraisal requirements. These new rules are seen as a positive move towards increasing the accuracy and transparency of appraisals.
Green Buildings are gaining importance
Another trend in real-estate appraisal is the increasing importance of green buildings. Green buildings are those that are both energy-efficient as well as environmentally friendly. The value of green buildings is rising as investors and buyers become more conscious about sustainability.
Appraisers are being asked to take into account the sustainability of properties and their energy efficiency when valuing them. This requires a new set and level of knowledge and access to data and analysis tools.
Conclusion
Real estate appraisal is experiencing significant shifts and new trends. These include an increased demand for appraisals, the use technology, changes to appraisal regulations and the importance of green building. It is vital that appraisers keep abreast of the latest trends and tools to ensure accurate and reliable valuations.