Valuations done quicker than ever before

Today more so than ever, the real estate valuation business sector is hot. PDSA has designed and built technologies to automate the workflow between lending institutions, the valuation organization and the brokers/appraisers who perform the valuation data capture. What is critical is reducing the span time, reducing the operational costs, improving valuation quality and increasing revenue. Fairway Technologies has successfully increased value for its customers. Fairway Technologies has developed an extensive real estate valuation solution.

Real estate appraisal, property valuation or land valuation is the practice of developing an opinion of the value of real property, usually its market value. There is a gradient of “appraisals” in the industry: a full blown appraisal or a broker price opinion (BPO). Broker's Price Opinion, or BPO, is a method that a real estate broker uses to estimate the probable selling price of a real estate property/house. The estimate of price is submitted in a BPO report (2-3 pages) that includes local and regional real estate market information, neighborhood analysis, and comparable properties (comps) that compare to the house (subject) that is being evaluated. This method of estimating a selling price has similarities to a Certified Market Analysis CMA and a residential real estate appraisal.

There are numerous data elements to capture for a property valuation. Many of the systems today capture data as ‘free text.' Free text is simply the characters with no inherent meaning. For example, a data field could be entered as 4/34/2009 and no error would be triggered because April does not have 34 days. That is a simple case and maybe most systems handle that. But how about a more complicated one: all sales comps must be with 5 miles of the subject property. How do you do that? Trust the broker to estimate that correctly? Certainly not. You must use geocoding to accurately ensure the sales comp is within the required range as specified by the customer. What other customer rules might there be? Required photos, comment presets, and actually 1,000s of business rules to ensure the highest quality BPO.

Electronic workflow management is critical! By reducing work flow time spans and electronically delivering information, you can quickly save time and money. Brokers can log on to the system, determine what work they wish to perform, enter all the necessary information and photos, ensure proper data validation and send the completed BPO back to the requesting institution. After each broker logs in, he/she can see his/her work queue which shows each BPO assigned to him, open issues, statuses, etc.

Typical and older systems that supported the BPO domain had little to no data validations. Hence, the BPO report would be returned, reviewed, tagged/rejected and sent back to the broker for corrections. This could happen numerous times for EACH BPO. This process drove costs up, labor up, paper usage up, and elapsed time way up. The approach is to inform the broker of the data errors/issues locally to him/her BEFORE the BPO is returned for inspection. How do you do that? By designing a system that supports an extensible and scalable rule-based validation engine: this saves time and money.

Geocoding is an important element of a quality BPO. Geocoding may sound easy but it has many complexities. Difficulties arise when distinguishing between ambiguous addresses such as 742 Evergreen Terrace and 742 W Evergreen Terrace or you are attempting to geocode new addresses for a street that is not yet added to the geographic information system database. Hence, it is important to use a company such as Fairway Technologies which has a rich experience in producing the highest hit rate possible based on your particular needs. We've even found that using the same address and calling different geocode services sometimes yield different addresses in completely different areas, so we need to examine the results to select the more reasonable one. We've also found that the same service may return more than one address, leaving it up to the consumer to decide which is best for their use.

In summary, by looking at your business model and where your business wants to go, Fairway Technologies can develop the business cases, system architectures, designs, and implementation and support to enable your business and revenue to grow.

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