ENHANCING THE APPRAISAL PICTURE

Why it pays to have a real expert in every Zaio zone

When complete, Zaio’s GeoScore™ database will provide users with a comprehensive accurate valuation of every residential property in the 250 largest urban centers in the United States. As discussed in our previous newsletter, this process starts with Geopic™, a photographic database that will eventually include 75 million property photos.

Zaio’s photographic resources are enhanced by in-depth local appraisals. According to Zaio CEO Thomas Inserra, “Professional appraisers play the most important role in Zaio’s database development. We rely heavily on the local appraiser’s knowledge and expertise. At the same time, our technology helps to better position small local appraisal businesses in their markets and enables them to do a better job of meeting the needs of their customers.”

Zaio has a formal business partnership with appraisers. Appraisers purchase licenses to operate in specific Zaio zones, and are responsible for initial property appraisals and ongoing data updates in their licensed zones. Appraisers earn fees whenever appraisals are requested in their zones.

We work with newly licensed appraisers to ensure they understand our pre-appraising system, how to work with it, and how to appraise more efficiently, resulting in a superior product. In the process, we virtually eliminate fraud and lender pressure to meet a predetermined property value.

Once photos are completed for a zone, Zaio acquires valuation data from several national sources. This exclusive information is merged with local and regional data and the appraisers’ data available through their local MLS service.

“We use a slightly different approach to ranking properties,” says Doug Vincent, Zaio’s Managing Director, and National Chief Appraiser. “Zaio software has introduced a ten-stage numeric ranking versus the three-stage ranking typical in the appraisal industry.” Data is reviewed relative to six characteristics: exterior condition, location, lot size, view, amenities and garage. “This refined grading system allows the appraiser to break down observable characteristics of value and changes the granularity in order to be more precise,” adds Vincent.

The initial review of raw data and photographs takes place in the office or anywhere a laptop is available. To optimize resources, this intensive grading process, can be handled by a qualified trainee under the supervision of a senior licensed appraiser. “We believe that this creates an opportunity for mentoring in our industry which has typically not been available,” Vincent says.

The final phase must be conducted on site by a licensed appraiser, and involves a thorough physical inspection of the property. According to Vincent, “we do find areas were subtleties influence the rankings.”

On average, it takes two to four weeks to complete one Zaio zone (10,000 homes). By comparison, it would take a traditional appraiser ten years to inspect, photograph and appraise 10,000 homes. Timeframes for zone appraisals can vary depending upon the appraiser and how many zones he or she has purchased. For expediency and control purposes, a limit of 120 days is placed on the completion of a zone following the receipt of photographs and data. The purchase of multiple zones allows the appraiser to extend the time line according to the volume purchased.
Ongoing monitoring and quality checks are critical to the database’s effectiveness. To retain their zone licensing, zone appraisers must review every property at least once ever thirty days. Zaio has an automated process in place to monitor activity and quality, and to offer guidance and assistance to its network of appraisal professionals.

Zaio has been experiencing tremendous growth over the past several months as appraisers who have taken the time to understand who we are and what we can do for them rush to get on board. We are committed to working with each of our appraisers at each step of the process. We offer them our full support as they integrate Zaio into their businesses. Appraisers interested in learning more about Zaio and the appraisal partnership opportunity are invited to email Brad Stinson, brad@zaio.com.

Coming up: We’ll continue to describe our operations in the next newsletter. Watch for our feature on the appraisers’ role in marketing our data base at the local level, along with details of our corporate initiatives to attract national lenders.

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