The emergence of artificial intelligence (AI) and the previously amended guideline from the European Banking Authority (EBA) for home appraisals is causing a major disruption in the home appraisal world. We predict that 80% of all home appraisals will be done via an Uber model within the next 5 years.
Desktop Appraisal is a form of appraisal in which the appraiser remotely assesses, evaluates and approves a model-based value using the computer. This is done with the help of AI and data about the housing market. This form of appraisal is faster and cheaper than an appraisal at home, as is currently the case.
The Desktop Appraisal is increasingly accepted by mortgage lenders. You can use the Desktop Appraisal for a mortgage of up to 90% of the purchase price of a home. This offers great advantages for the consumer, especially in terms of speed of the process and the cost of the appraisal. Where a regular appraisal quickly costs more than EUR 600, the costs for a Desktop Appraisal never exceed EUR 95.
Luke Liplijn, CEO of Matrixian, predicts that the Desktop Appraisal will gain popularity and will also be used in the near future when more than 90% of the purchase amount needs to be financed.
“Whether they represent the interests of banks, brokers, appraisers or consumers, everyone has a strong opinion on this development. And each party views it from its own background and interests. As with any disruption, this development also requires the market to find a new balance.
We believe that these interests go well together and have therefore developed the Homematrix Desktop Appraisal with which we work closely with a nationwide network of appraisers, so that the local knowledge of appraisers combined with smart technology (data and AI) can be used for a fast, objective and accurate value of the property. We respect the rules of the Dutch Register of Real Estate Appraisers (NRVT). For example, the appraiser can select comparable transactions himself, provide an explanation and sign the valuation. We call this the Uber model and it paves the way for the further advance of the Desktop Appraisal.” According to Luke Liplijn.
The Desktop Appraisal is suitable for regular homes. For mortgage applications for new homes, unique farmhouses in the polder or homes worth more than EUR 1 million, a valuation with physical property recording remains necessary. However, this category of homes does not exceed 20% of all home sales.