Valuation Techniques Change
In-person home valuations may soon become a thing of the past, as further inroads aremade into the use of AI.
Banks are becoming more comfortable with accepting valuations done using artificialintelligence models that also use image recognition to value properties.
In the past physical inspections by property valuers were the norm, but the industry isquickly moving towards automated and desktop valuations, which now account for almosthalf (49%) of all valuations.
Virtual valuations are about 88% cheaper than onsite valuations.
CoreLogic analytics executive, Tim Jenner, says banks and insurers are more readilyaccepting it. Virtual programs devise a valuation using multiple data points includingcomparable homes, previous valuations, location and nearby infrastructure includingschools.
“With the improvements in machine learning and image recognition (the model is) able tonow extract information from photos around the condition of the property, the type ofproperty, how many levels it is, and the construction of the property,” Jenner says.Millennials Move To The Regions
