According to Hometrack, the leading automated valuation model (AVM) provider for UK and Australian market, 1 out of 5 valuations are currently done by AVM.
Due to digital technologies and change in customer expectations the once manual process has evolved. So far AVMs have helped lenders to improve customers’ experiences by delivering a faster time to yes without compromising risk or autonomy. Lenders can choose the level of risk they want to take by determining when AVM should be used and when a full physical valuation is required.
There is still a middle ground when an AVM is not enough but full physical valuation is not required – desktop valuation. These valuations are completed remotely by qualified surveyors using the new technologies. But it is not only time to yes that is getting shorter. The use of new technology will give the surveyors greater flexibility and time to focus on the most complex cases.
As always change cannot be ignored (remember Kodak, taxi drivers, hotels, music industry, etc.). The mortgage approval process will always evolve to meet the expectations of the customers.