Last month, the Royal Institution of Chartered Surveyors published a blog that stressed the increasing importance of technology to the valuation industry.
However, Marcus Radcliffe, chief executive of Gateway Surveyors, has warned that despite a recent trend towards using automated valuation models (AVMs), surveyors should not underestimate the importance of local knowledge.
“Technology is important, but it should be seen as another tool for the surveyor to use rather than the panacea that some see it as.
“There is a continued drive towards using AVMs as the answer to the current shortage of surveyors in the industry and while this is understandable, it is a dangerous move if taken too far.”
Marcus explained that Land Registry updates are not instantaneous and therefore the data available to surveyors online will not be as accurate as that obtained in person from local agents and fellow surveyors.
He also highlighted an AVM’s inability to account for unexpected factors, adding: “…The AVM does not know if the kitchen has been ripped out!”
'Lenders and valuers alike often fail to adopt the latest IT'
Some 10 years ago, Gateway introduced its ‘PRISM’ methodology.
This promoted the use of AVMs as a filter mechanism to ensure that only properties with a particular level of risk profile required an internal inspection.
“Not popular at the time, this would appear to be something lenders are now considering due to a focus on cost and the capacity constraints in the market,” Marcus revealed.
Despite this, Richard Sexton, director of business development at e.surv Chartered Surveyors, complained that the valuation industry was often slow to adopt new technology.
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“…Refreshing the IT we use in the valuation industry is the only way that we’re going to be able to keep pace with the rising complexity of demands we’re now seeing,” Richard admitted.
“[However,] lenders and valuers alike often fail to adopt the latest IT, experiencing either difficulty or reluctance when it comes to migrating their systems.
“Many surveyors are still tied to paper-based systems, dictating or writing notes during site visits, just for them to be collated or re-written later.”
e.surv has invested heavily to ensure that its valuers now complete reports on tablets and that its back-office staff have access to sophisticated risk-assessment software.
'No quick-fix'
Regardless, Richard argued that lenders would now be crucial in spreading this technological development across the wider valuation community.
“Unfortunately, there is no quick-fix approach to this.
“As lenders move to update their own systems, valuers should be involved, and kept abreast of changes which will make their processes easier and faster.
“Through a combined commitment to innovation through technology, the industry as a whole has the ability to be transformed for the better.”
Similarly, Marcus suggested that as AVM providers continue to expand their content with data-covering issues such as flooding, radon and new infrastructure, the system will be of more benefit to lenders.
“This richer content could, however, enable lenders to make low risk, low LTV decisions on lending without referring to a surveyor.”
Richard explained that this advancement could be of benefit to both sectors.
“Technological innovation is undoubtedly the future of the profession.
“…It is those who are willing to consider new solutions that are ultimately going to have an advantage over their competitors.”
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