The news is filled with talk of real estate.Bubbles have that effect.We know through the work of people likeRobert Shillerand others that narratives are indeed economic forces and that compelling narratives can move markets.
In the U.S. real estate market, matters are of course more complex than mere narratives, but we do all know that constant hype adds to the buoyancy of markets, which then creates more hype.These virtuous loops are common in a variety of areas of the economy and real estate is no exception.
A lot is at stake.The U.S. residential real estate market is valued at about $40 trillion in aggregate. Real estate/housing is the bellwether for the entire economy and houses represent the typical familys most important financial decision.So much of life radiates from both the location and the valuation of the house a family occupies.
This twin importance on both the macro and the personal level draws a great deal of interest in this marketplace and its various offshoots.Still, the residential real estate ecosystem is complex, even opaque to many.Homebuyers and sellers contend with a variety of entities banks, insurance companies, mortgage servicers, appraisal companies, title providers, agents, brokerages, and even real estate marketers and the process can be labyrinthine to even those who have gone through it before.
Technology plays a big role.So too does trust usually manifested in the relationship between a buyer/seller and a real estate agent.For those who choose not to work with agents, the trust must be transferred to the technology platform or other form of automation that is used in the process.
Does your CRM hurt or help the customer experience?
In real estate, data is king. The more you leverage your own data the better off your agents or loan officers will be because theyll be able to identify, target and create better customer experiences.
Its worth reiterating the importance of trust.As mentioned, much is determined by the location and valuation of houses.The residues last for generations.Houses represent a major part in generational wealth transfer and inheritance and also play a major, and persistent, role in determining life conditions during the owners lifespan.What schools do the kids go to?How safe is my family?Who are my neighbors?How much wealth have I amassed?When can I retire?All of these fundamental questions radiate from what can appear to be a mundane question: What house do I buy?
With so much riding on this, it is important to locate the most relevant elements when determining whether to buy or sell a house.Of these, one stands tall:valuation.What is the house worth?What does the house cost?These two questions are at the center of all things residential real estate.
Such a simple set of questions with such complex answers.Many variables impinge on the value of a house.There are the usual ones: size, age, location.There are important ones that are hard to capture in macro-statistics the interior condition of the house being a major one. There are external factors that weigh heavily, alluded to in the first paragraph above, that have to do with momentum, fashion, and the narrative/desirability of a particular neighborhood over another.And so many more parameters as well.
Thus, the simple questions have complex answers.As real estate experts will tell you, the process of valuing not only a house,but large swaths of houses, even all houses in the U.S., requires deep technology insight, incredible ability to extract, transform, and ingest data, and a process by which you can query data with ease and speed.Not only are there a huge number of variables to understand, but also a variety of forms the data comes in spreadsheets, pictures, and so on.
The task is best suited for advanced technologies, collectively referred to as AI and machine learning.Add to this computer vision and you get the right cocktail for which the industry has long waited and which, more importantly, consumers and all parts of the real estate ecosystem deserve.
In a $40 trillion market that constitutes most families most important investment, good enough is not in fact good enough.
There is more too than simple economics.There is also a matter of, to put it clearly, fairness and justice.House valuations come into play at crucial times in the transaction process; they not only bookend the entire journey but also crop up during the time of appraisal.
We hear shocking stories of racial discrimination and a variety of other ills during the appraisal process.While people are prone to massive bias as with the case ofappraisers who suggested that an African-American womans house was worth half of what it was appraised for when she had a white friend pose as the stand-in owner.
Technology has biases too but only to the extent that they are algorithmically coded into the outcomes.As such, black box AI, which is to say completely opaque AI, needs to be replaced with an AI that is explainable and deconstructable so that biases can be identified and done away with.
The value of a house is a number of incredible importance and is one that is invoked often in real estate and in personal financial planning.Still, while it is given heed by many parts of the real estate ecosystem, few elements of that ecosystem demand simultaneous precision and depth.This is a mistake, and one that can have massive consequences for individual families, entire neighborhoods, and for the economy as a whole.Settling wont do anymore.
In the recent Gathering of Eagles conference, a particularly high-powered set of panelists all agreed that real estate is a people business.While this might be true at some level, there is nothing that suggests that people need to perform every single function in the multiple and complex journeys of house buying and selling, nor that they can be relied upon to offer unbiased and fair valuations without fear or favor.
Technology is not a panacea, nor will it ever be.But to use the tools that have been painstakingly developed over decades to enhance what is absolutely a people business is the smart thing to do. And it can help reduce bias, increase fairness and generate economic bounty for the entire real estate ecosystem.
This column does not necessarily reflect the opinion of HousingWires editorial department and its owners.
To contact the authors of this story:Romi Mahajan at email@example.com
Jeremy McCarty at Jmccarty@valligent.com
To contact the editor responsible for this story:Sarah Wheeler firstname.lastname@example.org
Read the original:
- Oil & Gas Pipeline and Transportation Automation Market in Industrial Machinery Industry to grow by $ 742.43 million| Emerging Trends, Company... - July 12th, 2021
- Labor shortage will lead to more automation, & responsible teens - New Jersey 101.5 FM - July 12th, 2021
- System Integration Services Market for Industrial Automation in India to reach USD 420.53 million| Discover Company Insights in Technavio - KPVI News... - July 12th, 2021
- Exclusive: TikTok introducing more automation to video removals - Axios - July 12th, 2021
- The Rise of Automation in Analytical Science - Technology Networks - July 12th, 2021
- Innovation Institute incubator to co-develop automation tools with Olive - Modern Healthcare - July 12th, 2021
- Worldwide Industrial Automation Industry to 2027 - Growing Number of SMEs Presents Opportunities - PRNewswire - July 12th, 2021
- Robotic Process Automation Sweeps Across the Healthcare Industry - Electronic Design - July 12th, 2021
- Everyone's Talking Automation: What does HR Software Really Do? - State-Journal.com - July 12th, 2021
- The pandemic has brought more automation, which could have long-term impacts for workers. - The New York Times - July 12th, 2021
- Shanghai Targets 47 Million TEU Annually Through Growth and Automation - The Maritime Executive - July 12th, 2021
- Restaurants are starting to hire robots instead of people who are demanding higher pay - Business Insider - July 12th, 2021
- Provider-owned Innovation Lab partners with Olive to build automation tools - MedCity News - July 12th, 2021
- The lab automation market is expected to grow at a CAGR of 8.53% during 2021-2026 - GlobeNewswire - July 12th, 2021
- Home Automation For Fans Of Quick-and-Dirty Solutions - Hackaday - July 12th, 2021
- Remote Access in the Continuous Processing Industry Take Five with Automation World - Automation World - July 12th, 2021
- Banking CFOs need to step up efforts in ESG, automation and crypto support - Accenture study - IT Brief Australia - July 12th, 2021
- Automation Market in Textile Industry: Forecast of Healthy YoY Growth Rate at 1.20% - PRNewswire - July 12th, 2021
- Insights on the Industrial Automation Global Market to 2027 - Featuring ABB, Siemens and Schneider Electric Among Others - Yahoo Finance - July 12th, 2021
- OMD Sees Campaign Results Skyrocket by Using IAS Automated Tag with Google - Yahoo Finance - July 12th, 2021
- Adding Automation to PRNT's 3D Printing Thesis - ETF Trends - July 12th, 2021
- WISeKey combats cybercrime with HIRO Cybersecurity Knowledge Automation, the first ever integrated cybersecurity automation solution which uses... - July 12th, 2021
- Restaurant owner: Automated drive-thrus trump $15 wages for business - Business Insider - July 12th, 2021
- Introducing FlexRule X, the Next Generation of End-to-End Decision Automation Platform: Ready for Early Access - PRNewswire - July 12th, 2021
- Network Automation Market to Hit USD 22.58 Billion by 2027 Backed by Increasing Adoption of Connected Devices Worldwide, reports Fortune Business... - July 12th, 2021
- Building Competitive Advantage With Automation - Broadband Communities - April 5th, 2021
- What Do We Mean by Automation? - Forbes - April 5th, 2021
- NG automation to catapult productivity and profitability with edge computing - FutureIoT - April 5th, 2021
- How automating and streamlining can provide a treasure trove of data - Smart Business Network - April 5th, 2021
- Addressing great need for automation of composites - Advanced Manufacturing - April 5th, 2021
- NASAs small business picks take on automation in space - TechCrunch - April 5th, 2021
- Cockpit automation leading to airline industry complacency - Airline Ratings - April 5th, 2021
- HAL in Permian Automation Breakthrough and More - Rigzone News - April 5th, 2021
- Worldwide Robotic Process Automation Industry (2021 to 2026) - Featuring Automation Anywhere, NICE and Blue Prism Among Others -... - April 5th, 2021
- Deloitte and UiPath Team on Intelligent Automation Solutions Built for the Oracle ERP Platform - PRNewswire - April 5th, 2021
- The benefits of hyper-automation for banking - Finextra - Finextra - April 5th, 2021
- Test automation tools: 8 trends and techniques to watch - TechBeacon - April 5th, 2021
- CrowdStrike Releases 2021 Cybersecurity Global Threat Report - Automation World - April 5th, 2021
- Is the Future of Manufacturing Automated or Autonomous? - Entrepreneur - April 5th, 2021
- Diving Into the Boost for Automation in the Claims and Appraisal Process - glassBYTEs - April 5th, 2021
- How does your company help customers with their automated testing initiatives? - SDTimes.com - April 5th, 2021
- 78% of IT Leaders Plan to Increase Spending on Automation Initiatives Post-Pandemic - Business Wire - April 5th, 2021
- As Automation Expands in the Nordic Region, Look to 'GXF' - ETF Trends - April 5th, 2021
- Rockwell Automation Stock Appears To Be Significantly Overvalued - Yahoo Finance - April 5th, 2021
- Klaviyo Unveils New Marketing Automation Innovations with Personalized Benchmarks Tool and Conversational SMS - Business Wire - April 5th, 2021
- Save Time & Money With Automated Password Resets - Security Boulevard - April 5th, 2021
- Global Building Automation and Controls Market (2020 to 2027) - Opportunity Analysis and Industry Forecasts - ResearchAndMarkets.com - Business Wire - April 5th, 2021
- Strategy Analytics: Automation, IoT, Cloud and 5G Accelerate the Growth of Unified Endpoint Security Adoption - Business Wire - April 5th, 2021
- Latest innovative report on Robotic Process Automation in Finance Market by 2026 with top key players like WorkFusion, Automation Anywhere, Blue... - April 5th, 2021
- DIY Home Automation Market Research Report 2021 | Industry Analysis, Share, Growth, Trend and Top Key Players KSU | The Sentinel Newspaper - KSU |... - April 5th, 2021
- Making It Work: Automation firm stays sharp with robotics for use in pharma industry - Business Post - April 5th, 2021
- The Evolution of Automation Technologies - Security Boulevard - February 17th, 2021
- Automation in the Age of COVID-19 - Advanced Manufacturing - February 17th, 2021
- Analysts need advanced automation tools to reduce fear of missing incidents - Help Net Security - Help Net Security - February 17th, 2021
- Salesforce: Combining AI and automation can give us superpowers and make us more productive - ZDNet - February 17th, 2021
- Notable Health seeks to improve COVID-19 vaccine administration through intelligent automation - TechCrunch - February 17th, 2021
- 3 Ways Intelligent Process Automation (IPA) is Knocking at the Doors of the Recruitment World - BBN Times - February 17th, 2021
- Automation in Retail to scale new heights and pave way for dynamism - Latest Digital Transformation Trends | Cloud News - Wire19 - February 17th, 2021
- How to automate while maintaining security and compliance | SC Media - SC Magazine - February 17th, 2021
- 3D-Printing Is Speeding Up the Automation of Construction - Metropolis - Metropolis Magazine - February 17th, 2021
- The 58th Design Automation Conference Has Been Rescheduled for December 2021 - Business Wire - February 17th, 2021
- Explosion Proof Equipment in Automation and Control Systems Market In Depth Research Report 2021-2026 by Regional Analysis and Key Players Profiles |... - February 17th, 2021
- Verizon targets robot automation with Incubed IT deal - Mobile World Live - February 17th, 2021
- OPEX Corporation Unveils New Branding to Highlight Automation Technology Innovation - IT News Online - February 17th, 2021
- Lab Automation Workcells Market Overview By Trends, Industry Top Manufactures, Size, Industry Growth Analysis & Forecast Till 2026 KSU | The... - February 17th, 2021
- ActiveCampaign furthers commitment to customer success by bringing together 500+ automation recipes with 125+ new email design templates - PRNewswire - February 17th, 2021
- Increase Resource Efficiencies and Revenue with Automation - Lexology - February 17th, 2021
- Leading Demand Generation Company Switches to TEB Business Automation from Salesforce - IT News Online - February 17th, 2021
- Building Automation System Market 2021 Industry Outlook, Comprehensive Insights, Growth and Forecast 2026 KSU | The Sentinel Newspaper - KSU | The... - February 17th, 2021
- Industry Insights: The future of camera control and automation - NewscastStudio - February 17th, 2021
- Best Research Report on Global Industrial Wireless Automation Market with New Business Opportunities by Forecast to 2027 | Siemens, Honeywell... - February 17th, 2021
- More automated traffic enforcement could come to Arlington in the name of social justice - FOX 5 DC - February 17th, 2021
- Harting hosts industrial automation webinar series - Foodprocessing - February 17th, 2021
- Salesforce offers intelligent document automation in conjunction with AWS tool - Healthcare IT News - February 17th, 2021
- Automation Wont Take All The Manufacturing Jobs And Covid Proves It. Heres How - Forbes - February 4th, 2021
- CAQH 2020 Index: Automating Healthcare Administrative Transactions Has Reduced Annual Costs by $122 Billion, $16.3 Billion More Can Be Saved Through... - February 4th, 2021
- Nigeria: Munich Re bets on automation to strengthen the insurance market - The Africa Report - February 4th, 2021
- Digitalization and Manufacturing Automation to Drive the High-performance Plastics Market to $2 Billion by 2027 - PR Newswire India - February 4th, 2021
- Research shows that automation can make recruitment more human - PRNewswire - February 4th, 2021
- Helsinki accelerates AI and automation in city services - Cities Today - February 4th, 2021