DS News - U.S. Bank

» VISIT US ONLINE @ DSNEWS.COM 65 properties selected, are in fact, the best comparison. Typically, those dimensions and attributes are inventoried by a person physically entering the home and taking measurements and photos. In the future—and increasingly, now—we will use high-resolution cameras to generate floor plans without the need for pencils and sketch pads, or even CAD software. Autonomous visual collection using robotic aides, drones, and high-resolution cameras (even on smartphones) will become the new path to collecting and validating property dimensions and floor plans. Augmented Reality: 3D modeling and visualization tools will allow sellers to "stage" a property and buyers to "visualize" their potential move independent of each other. Imagine being able to "see" how well your furniture fits before you drag it up the stairs. Tools like these will also allow buyers to normalize homes for comparison purposes by creating standards that level the differences. Furthermore, these techniques will allow for data-driven innovation in how property values on comps are adjusted today by appraisers. Image Classification and Extraction: e ability to interrogate images to derive factual information instantly is already changing the worlds of cyber and physical security, retail engagement, and even autonomous driving. rough new ways of image collection like smart apps, drones, and other consumer appliances, the real estate segment is about to explode with detail. AI and deep learning techniques are opening the doors to interpreting what is inside an image with high degrees of confidence. For instance, the identification of the type of room, contents, condition—and the cost it will take to improve it—will soon be derived from image recognition and interrogation techniques and will inform the valuation process and interpretation of value. A NOTE OF CAUTION As is always the case with revolutionary advancements, take heed of some notes of caution. Many of the future visions of property valuation hinge upon the ability to collect and mine more and better sources of data. Some may be provided by the consumer through opt-in programs, while others would be collected as part of the valuation process. Regardless of the method used there would be a substantial increase in collection frequency, which in turn creates a number of other obstacles. Chief among the list of possible concerns are the moral/ethical issues that might arise from these practices. e drive to get better data could mean much more frequent engagement with consumers about the interiors of their homes. e opt-in mentality needed to succeed requires trust. But, the fear of a data breach or potential misuse of images will likely cause more than a little trepidation among many homeowners. ere are also technical issues around ensuring the integrity of data and images. For example, GPS loses accuracy indoors, so confirming and verifying the location of all data and images won't be easy. ere needs to be a way to authenticate where and when the images were taken to make sure they are not old or tampered with and that all rooms and all angles are covered. Finally, from a business perspective, there needs to be a systematic application of rules that generate consistent results. e industry must avoid an enigmatic analytic where we trade the subjectivity of an appraiser for the unknown of a "black box." A quick look in the rear-view mirror shows us just how far we have come in narrowing the gap between automated valuation products and those from highly expert appraisals. e future is one where data is collected, processed, and analyzed regularly and in real time. at data will be more complete and accurate and can be leveraged in highly valuable ways with AI and ML. Without a doubt, the future for property valuations is bright. Many of the future visions of property valuation hinge upon the ability to collect and mine more and better sources of data. Some may be provided by the consumer through opt-in programs, while others would be collected as part of the valuation process.

• Cover