CAN AN Ai ALGORITHM REPLACE A PROPERTY VALUER, TRULY?

Here are seven advantages of using Ai to generate a property valuation:

  • 1. Data collection and analysis: Ai can collect and analyse large amounts of data related to the property being appraised, including location, size, age, and recent sales. This can help eliminate the need for manual data collection and reduce the potential for errors.
  • 2. Image recognition: Ai can analyse images of a property, including interior and exterior images, to identify key features that impact the property's value, such as the condition of the property, the quality of finishes, and the overall layout.
  • 3. Comparable property analysis: Ai can analyse sales data of similar properties in the area to generate a comparative market analysis, which is one of the key components of a property appraisal.
  • 4. Automated valuation models: Ai can use algorithms to generate automated valuations of properties based on the data collected and analysed. This can be especially useful for simpler properties where the valuation is more straightforward.
  • 5. Quality control: Ai can be used to review and ensure the quality of property appraisals, which can help reduce the risk of errors and increase consistency across appraisals.
  • 6. Speed and efficiency: Ai can significantly reduce the time it takes to complete a property appraisal by automating many of the processes involved in the appraisal process. 
  • 7. Cost savings: By automating many aspects of the appraisal process, Ai can help reduce the cost of appraisals for both appraisers and their clients.

    However, even though the above provides great advantages, Ai does have limitations to execute a valuation report paid for by a client. Here are three such limitations:

  • 1. Access permissions: To access a members-only database, an Ai system would need to have the appropriate access permissions. This would typically require the Ai system to have a user account with login credentials that grant access to the database.
  • 2. Data sharing agreements: If the members-only database contains sensitive or proprietary information, there may be legal or contractual restrictions on how that data can be accessed and used. An Ai system that wants to access such data would need to have an agreement in place with the database owners that allows for such access.
  • 3. Technical limitations: Depending on the technology used to host the members-only database, it may not be possible for an Ai system to access it directly. For example, if the database requires a specific type of software or protocol that the Ai system doesn't support, it may be necessary to build a custom interface to enable access.

    In summary, yes Ai poses some threats for the traditional property valuer. At present there are some major limitations prevent using Ai to generate the valuation report. The unspoken concern though, is that at some point Ai could have access to private member-only databases. That along with an ever-improving algorithm for publicly accessible real estate valuations, could make the valuation process more synergistic and seamless. It just may come down to the governing authorities and their regulations and of course, time, to truly know...