STRATEGY CLOSE-UP

Looking Back – and forward – with Zaio founder Brad Stinson, Vice President, Business Development

These are exciting times for Zaio Corporation. A dream that began more than a decade ago is quickly taking shape and founder Brad Stinson remains an integral part of its development.

The concept of desktop appraisals is not new. Back in 1995, when Stinson was an independent appraiser, his major lender already had a vision of desktop appraisals. Furthermore, lenders wanted the appraisal professionals to be the real estate experts. There was concern, however, that the appraisers would be unable to address the need for speed. Appraisers can only value a single house at a time, with reports often taking several days to compile.

Insight into client needs proved to be Zaio’s first advantage. Stinson believed he could meet his industry’s requirements for fast, accurate appraisals by employing these core strategies:

• Do the appraisals in advance – with regular updates – so that current, accurate information is already on hand whenever a client asks for it. Zaio augments existing data with property photographs, and takes full advantage of “resident experts.” Local appraisers supply local market data and inspect each property. (Automated Valuation Models (AVMs) also gather facts in advance; however, the raw data is unverified; there is no photograph, no property inspection and no expert appraiser to focus the analysis.)

• Unite appraisers nationwide in offering a strong, unified, professional response to industry needs. Under the Zaio system, local appraisers purchase zones within their markets. Licensed Zaio appraisers own the information they gather in their zones, and receive payment whenever it’s used. Zaio trains and supports them, providing leadership and vision as the team grows. “We look for business-minded appraisers who are committed to our concept and standards,” says Stinson. “Appraisers are thoroughly screened and their work is monitored on an ongoing basis.”

• Apply technology to make the process fast and efficient. “We didn’t invent database management or digital cameras,” says Stinson. “All we did was put it to work. In the past, technology itself was an obstacle, because there were problems with bandwidths and storage limitations. Now, the appraisal industry – and the whole world – continues to benefit from technology.”

• Keep standards high. Zaio services are tailored to lenders and appraisers who want to do a better job. In boom times, lenders may be less diligent. “When times are tougher,” says Stinson, “more detailed analysis is required.” Stinson got his start appraising real estate foreclosures, and emphasizes that “financing must be underscored by accurate values.” According to Stinson, Zaio has zero tolerance for work that does not comply with USPAP standards regarding the scope and purpose of the appraisal. Appraisals are also conducted in an unbiased, uncompromised fashion, without any pressure to hit a target figure. All things considered, Zaio is lifting the bar, setting the standards by which all appraisers will be measured.

Following this blueprint has pushed Zaio well beyond the entry level in the industry. “We are firmly established on the middle tier now,” says Stinson, “We’re providing prudent lenders with the ultimate in real estate analysis: speed, quality and compliance.”

Looking ahead, Stinson notes that although Zaio has moved into a growth phase, research and technology remain a primary focus. “We continue to monitor technological advancements, to see how they can be applied to our business,” says Stinson. “We insist on adopting all the best business tools and practices. We do not want to rest on our laurels.”

Zaio’s overall business strategy is not unique. In fact, Zaio’s business model has already proven to be successful for many other companies that maintain large databases of information, use proprietary score methods, pre-manufacture their products to the specifications of various customer segments, and deliver their products electronically to large banks and other corporations in seconds.

This strategy is paying off. “Zaio is creating quite a buzz in the industry,” says Stinson. “We’re putting professional appraisers back on the map. And that’s putting us on the map.”

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