Client-Server Real Estate Valuation System Using Licensed Appraisers
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Solution Overview
Problem
Automated Valuation Models (AVMs) provide inaccurate residential real estate valuations due to their reliance on proprietary algorithms and lack of local expertise, leading to inefficiencies and inaccuracies in the appraisal process.
Innovation Solution
A client-server architecture that connects customers with licensed appraisers who have local knowledge and expertise, allowing them to generate ValueCheck appraisals using their professional judgment without physical inspections, thereby providing more accurate and cost-efficient valuations.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If Automated Valuation Models (AVMs) are used to generate property valuations, then cost is reduced and processing speed is improved, but accuracy and reliability of valuation deteriorate due to lack of local expertise
Solution Approach 1:
The system introduces a licensed appraiser as an intermediary between the automated system and the valuation process. The appraiser receives property data from the AVM, applies local market expertise and professional judgment, and generates the final valuation. This intermediary resolves the contradiction by combining automated efficiency with human expertise for accurate valuations.
Solution Approach 2:
The valuation process is segmented into distinct components: automated data collection and processing (AVM functions) and professional judgment application (appraiser functions). This segmentation allows each component to perform its optimal function - the AVM handles data gathering efficiently while the appraiser focuses on accuracy-critical analysis.
2Measurement precision
If licensed appraisers with local expertise are used to perform valuations, then accuracy and reliability are improved, but cost increases and processing time increases compared to automated systems
Solution Approach 1:
The AVM performs preliminary actions by automatically collecting property data, identifying comparable properties, and preparing analysis frameworks before the appraiser begins work. This preliminary automation reduces the appraiser's workload and enables faster processing while maintaining accuracy through human oversight.
Solution Approach 2:
The system enables partial self-service where the AVM independently handles data gathering, processing, and initial analysis without human intervention. The appraiser then reviews and refines these automated outputs, combining the speed of automated self-service with human judgment for final accuracy.
3Measurement precision
If full appraisals with interior inspections are performed, then valuation accuracy is improved, but cost and time requirements increase significantly
Solution Approach 1:
The system extracts the essential valuation function from the full appraisal process by removing the time-consuming interior inspection component. The AVM collects sufficient property data through alternative means (public records, photographs, listings) and the appraiser performs analysis without physical inspection, retaining accuracy while eliminating unnecessary time loss.
Solution Approach 2:
The system applies partial action by performing only the necessary valuation analysis without completing the full inspection process. The AVM gathers adequate data through automated sources and the appraiser performs sufficient analysis to ensure accuracy, avoiding excessive time investment in complete physical inspections while maintaining valuation quality.
Data Source
AI summary
A client-server architecture provides appraisal services between licensed appraisers and customers. The server includes an appraiser database having a plurality of records, and a query engine for searching the database. Each record corresponds to a licensed appraiser, and includes contact information and information regarding one or more locations in which the appraiser has expertise. An appraiser-client is accessible to the server through contact information stored in the appraiser database. The server includes a web hosting module that interfaces with the query engine. A customer-client communicates with the server, and orders a valuation of a residence. Videos, photos and architectural plans may be attached to the order. The query engine searches the appraiser database for an appraiser-client whose location information matches the address of the residence. The server utilizes the contact information to forward the order to the appraiser client whose location information matched the address of the residence.