AI Answers: COVID-19's Impact on Valuation Practice and Operations

This week’s AI Answers analyzes the impacts COVID-19 has had on real estate valuation professionals’ practices and operations. Jonathan Thatcher, CSCP, CLTD, CAE, senior manager of research for the Appraisal Institute, analyzes recent time series survey results of appraisal professionals in the midst of the COVID-19 pandemic.

The content of this presentation represents the opinions and views of the presenters and does not represent the viewpoint of the Appraisal Institute unless formally adopted by the Appraisal Institute Board of Directors. The content of this program is provided for educational and informational purposes only with the understanding that the Appraisal Institute is not engaged in rendering independent legal, accounting, or other professional advice or services. Nothing in this program is to be construed as the offering of such advice or services. If expert advice or service is required, participants are responsible for obtaining such advice or services from appropriate professionals.

[eric]

My Opinion, COVID-19 is NOT "THE" appraiser's threat and/or the relevant item to be studied in the profession. COVID will pass. I do applaud AI for probing this ... the data results support limited concerns in the profession ... the comment by the AI moderator about underlying concerns of current Federal and lending stimulus financial "teets", and their eventual removal is most relevant and spot on. It would clearly seem reasonable financial support/forebearance removal will inflict substantial economic turmoil and negative influences into real estate (ex. renters can't afford, land lords can't pay, = increase inventory of 2-4 units). At least until vaccine is available for full economy opening. The supply and demand cycle is likely to flip from current low inventory - strong demand, to the opposite. The long term horizon appraisers need to REALLY be concerned is the massive underlying shift from appraisals to AVM, with most of the large AMC' having extensive data aggregation abilities and offer to clients of valuation. Corelogic, ServiceLink, etc./ Also, utilization by lenders to bypass appraisals using new, congressionally approved higher appraisal threshold requirements. Large banks lobby to influence congress to include minimizing appraisers in their risk management process, clearly has influenced/resulted in the Appraisal Foundation's total revamp of USPAP and lowering of qualifications and standards to met GSE's and lenders needs. (Residential perspective only) Commercial even worse, work from home social shift ?)