The Greater Chattanooga Association of Realtors introduced a cutting-edge appraisal database to its appraiser members this week that will provide more accurate information and better communication for all members of GCAR and the lending community.
A combined, cooperative database of this kind does not exist in any other part of Tennessee and will be one of only a handful nationwide.
In recent years, automated valuations which estimate fair market value of a property, such as Zillow’s “Zestimate,” have become more popular. However, GCAR understands that real estate is hyper-local and there is no replacement for an experienced, knowledgeable Realtor or licensed appraiser when it comes to determining fair market value of any piece of property. The automated valuations rely on tax records for square footage information, which are notoriously inaccurate and thus the value projections misleading.
Condition is another variable that cannot be measured by computer software, no matter how sophisticated. How does a program know if a home has a new roof, hardwood floors or granite countertops? And while software can compare properties based on distance to a subject property, can it determine if a home is water-view verses waterfront? All these factors affect value and require a human examination.
At the same time, the level of scrutiny being applied by lenders to appraisals is at a record high. Members of this cooperative database, being supplied to participating appraiser members of GCAR, at no additional cost will become an invaluable tool in determining value. In addition, Realtor members of GCAR will benefit from having access to accurate square-footage-per-level information provided by previous appraisals on properties. This accurate breakout by level is important, since living space in basements or “below grade” is not as valuable as finished square footage that is above ground level.
The Greater Chattanooga Association of Realtors is constantly searching for new ways to improve the accuracy of information provided by its members to the public and business community. This investment by GCAR is another example of why you should work with one of its affiliate members!
Mark Hite is president of the Greater Chattanooga Association of Realtors