streamlining
Issue 55 - October 22nd, 2021
I am more excited than ever about the innovation and pace of new regulation hitting the real estate industry, and this past week the FHFA declared that “desktop appraisals” could be used permanently post pandemic.
Why are you so excited about something that sounds so boring, Sam?
The appraisal and loan process is one of the most time consuming (and chaotic) pieces of the home escrow and closing process. This new regulation which has been fully approved will allow home appraisals to be conducted without the physical presence of an appraiser starting in early 2022.
One of the biggest cogs in the closing process is waiting on loan approval and the appraiser in today’s world has to physically visit every single property which can sometimes take weeks to schedule. This is just “another one of those things in the industry that has been this way forever,” but this new evolution will have a tremendous impact on the future of the transaction streamlining pace.
Who will benefit?
CONSUMERS!
And some of the AVM companies out there will begin to play an even bigger role in the loan process.
What are AVMs?
Automated valuation models (AVMs) are software-based pricing models used in the real estate market to value properties. AVMs are more efficient and consistent than a human appraiser in a lot of cases. DATA WINS. Humans double check the data and confirm the accuracy!
My vision of the future is a one click home purchase similar to buying something online, and this version of the future is getting closer to reality with small changes like this pushing the regulation and industry forward!
Newsworthy Links To Share
According to the Urban Land Institute (ULI), Nashville has become the most
desirable market for real estate investment in 2022. Raleigh-Durham dropped to second place while Phoenix blew past Austin for third. (CoStar)U.S. apartment rents have jumped more than 10% on average since early 2020. An analysis of RealPage data by The Business Journals found, nationally, rents have increased more than 10% between Q1 2020 and Q3 2021 — from $1,423 to $1,577. More than 30 metropolitan areas have outpaced that rate of rental increase during the same time period. (Business Journals)
Wander Raises $7M To Help People Live And Work Anywhere: Wander owns the smart homes it operates—which all come with a Tesla—and allows users to customize the settings in the home, like the temperature and lights, through the Wander app. (Crunchbase)
AirGarage, a full-stack parking operator, raises $12.5M in round led by a16z: The company works with parking real estate owners and offers a full-stack software and management service for their lot or garage. That means handling everything from installing signage to collecting payments, and even providing parking enforcement.(TechCrunch)
UpEquity Closes $50M Series B Funding Round to Democratize Homebuying (BusinessWire)