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Updated about 17 years ago, 11/18/2007
Technology changes & Zaio
Has anyone read about or been following Zaio? If you have a problem finding their website PM me and I will get you the link.
Their model is to create a database of every residential property in the US including photos and appraisals for each. Every year the appraisals will be updated. These are drive by appraisals.
As properties sell the data will be re-evaluated and properties that are outside of the expected range will have their appraisal updated.
Some wonder how you can check every property even if just from the street. Zaio's response is the trash is picked up every week from every address (more or less) so visiting all the property once a year is not that hard.
They are using what I will call a Dell model and charging appraisers and photographers a fee for exclusive territories. The appraiser gets a fee every time the appraisal in their market is used. Like buying into a franchise is one way to view it. Like Dell in that Zaio collects revenue before selling the appraisals.
What are your views? What other companies are applying technology in new ways that will likely change the RE marketplace?
John Corey
This is also a good way for a newbee to learn a territory and make some money to fund their startup.
Also, learning the values of the properties in your territory and leaning how to value a property are all valueable to a new investor.
Too bad Orange County, California is mostly taken (except for three war zones). I'd be tempted.
Wow thats a great website John, thanks for the heads up.
Interesting idea indeed. What I will be curious to see is how accurate Zaio's figures will be. If it's anything like Zillow though, chances are I will stay away from it due to the amount of value issues in the different locations.
Originally posted by "galvin":
The business model is very different. Appraisers are creating the values and they only get paid if lenders use the appraisals.
John Corey
How can you do an accurate appraisal by driving by a property? I get that an appraisal is nothing more than an opinion, but what about the condition of the inside that you cannot see by driving by?
Yeah, I honestly won't be convinced until I see a working version of Zaio. I mean heck, with Zillow's super-duper-technologically-advanced appraisal algorithms still way off in a lot of areas in the country, I would be hesitant on how accurate a simple 'drive-by' appraisal would be.
BlueStarHomes & galvin,
I think you are missing the point a bit.
Drive by appraisals are already rather common and used in specific deals. A drive by will not address the interior condition but that is not always something the lender is concerned about.
BPO are rather common and have a purpose.
Zaio is not saying that the data will be the same as an appraisal performed with a full walk-thru.
The data in the system started with an appraisal from an appraiser. It is blended with other data. Exceptions are expected. For many lenders they do not need a full appraisal. When real sales happen the data will be adjusted to reflect the sale. How and why a specific sale differs from the expected value is not always something a walk-thru can show. Public records and other things are needed when there was a foreclosure, etc.
Full walk-thru appraisals will still be ordered if and when they are needed.
John Corey