AI South Jersey Chapter Education Conference

Using modern appraisal technology is imperative to the future success of appraisers. Appraisal Institute chapters like the South New Jersey Chapter recognize that and are providing learning opportunities for appraisers in their chapter. The chapter, led by President Charles McCullough, MAI, AI-GRS, and Vice President Michael Descano, MAI, covers central and southern New Jersey. Appraisers from this group provide valuation services in New Jersey, Pennsylvania, Maryland, and Delaware. Last week, they hosted a continuing education class that I led called, “Modern Technology and the Commercial Appraisal Practice”.

The focus of this 2-hour class was to consider some of the dominant modern technologies that are shaping business industries. We looked specifically at how these technologies are impacting appraisers in the structure of the commercial appraisal office. Further, how they impact the development and delivery of the commercial appraisal report.

We started by taking a look back at some of the historic technological developments over the last 50 years. These included the Internet, mobile phones and artificial intelligence. So what does the future of appraisal technology look like? There are five dominant modern technology trends that are shaping the future for the business world in general, and valuation professionals in particular.

Modern Appraisal Technology Trends

For appraisers to be competitive now and in the future, we need to know the best practices and tools for navigating and implementing these trends. They include: cyber-security, the cloud, big data, specialized software replacing spreadsheets, and mobility.

The importance of each trend is monumental and here’s why.

• Cyber-security is critical because appraisers work with highly sensitive data every day. Threats come from many avenues; malware, ransomware, phishing, and social engineering. A breach could be lethal to your reputation and the very life of your business.
• The cloud is crucial for many reasons, including security, but it is also the most economically efficient way to operate your practice.
• Big data is vital because real estate is immersed in volumes of data and appraisers must be able to research, access, retrieve, manage, and analyze a vast amount of data in a timely manner.
• When it comes to specialized software, Fortune 100 companies have been moving away from spreadsheets for several years. Specialized software reduces errors and is much more suitable for handling big data.
• Lastly, mobility enables professionals to work anywhere, reduces office costs, and opens up the talent pool.

How appraisers embrace these five trends will largely separate the best from the rest over the next few years.