We live in digital times and the digitization of our world is only increasing, also within the appraisal world. The enormous amount of online data ensures that model-based valuations (calculation models that determine house values on the basis of big data and algorithms) are becoming smarter and more popular. But what does this mean for the appraiser’s profession? Our college Bart Meijer, Real Estate Intelligence specialist, talks about this with appraiser Robbert May of Winvest Onroerend Goed.
Those who want to know the value of real estate and are looking for an appraiser for personal and valuable advice can contact Robbert May. He has always been passionate about real estate and has been a registered and certified broker and appraiser for over 20 years. Since 2000 he has his own brokerage, Winvest Onroerend Goed in Wijk bij Duurstede, which is located in the old city center as of 2018. When asked to describe the appraiser’s profession he proudly says that it is a wonderful career that has everything to do with observing, investigating, making a value judgment and giving personal advice.
The appraisal world is experiencing some (digital) developments, including the strong increase in model-based valuations. When determining a house value Machine Learning (ML) is used, which is based on a large number of purchase prices and construction characteristics of comparable houses.
When Robbert is asked about the future of appraisal it immediately becomes clear that he is not afraid of technology but uses the opportunities it brings along. According to him appraisers should use this in their daily work. “I use model-based valuations to verify myself. The closer my valuation is to the model-based calculation, the better. It confirms that my valuation is correct. And if this is not the case, then I will investigate. I will find out exactly why the values differ from each other”.
He therefore sees model-based valuations as a useful tool and not as a replacement for his profession. “To calculate a correct valuation you also need a physical viewing in which various factors are examined and assessed. This includes examining the condition of the house, internal factors, the use and external influences. For example, a house may have a brand new kitchen or an outdated bathroom. This information must also be included in order to come to a fair valuation”. Data-based calculation models are therefore certainly useful, but they do not cover everything. They provide perfect support in determining the value of the exterior of a house.
The House Value Report can be used to support a valuation. It uses open data from CBS, Kadaster, BAG and PDOK to calculate accurate valuations of houses. In addition, the report also provides an overview of the location data, constructional information, the energy label, a cadastral map and reference homes (including purchase prices).
When Robbert is asked about his added value for his customers he does not have to think long. “My added value is my market knowledge and personal attention. My colleagues and I do not have a 9-to-5 mentality. We unburden the customer and continue until everything is arranged for them. That is why I do not see model-based valuations as a threat. Appraisers who are afraid of this are the appraisers who deliver a valuation within five minutes. For the appraisers who really make something of their profession model-based valuations are a perfect support!”
If you are interested in model-based valuations? Please contact us. You can reach us on: 020 – 244 3256.