I often get blank stares when I ask appraisal firm owners, including national firms, what percentage of their AI budget is dedicated to reducing review revision rates. I understand why.
Most AI investments are focused on streamlining report creation, company-wide market and comp data share and shortening turnaround times. Those are great goals and the productivity gains can be significant.
Increasing profit is a good thing. However, the bank clients’ 50% revision rate (national average) seems like a costly problem to leave unaddressed. Every revision unnecessarily creates additional work for the fee appraiser and bank reviewer.
While some firms view revisions as “just the junior person’s time,” that perspective overlooks the operational cost and impact on client confidence. Revisions consume capacity that could otherwise be spent on new assignments, deeper analysis, client service, or business development.
Intrinsic motivation in the appraisal profession often shows up as a desire to become more productive, more efficient and better at managing a higher workload. If appraisers are motivated to become more effective, why isn’t reducing revisions and improving first-pass quality a larger part of the conversation? A report that clears the review process is a clear indicator of service and operational excellence.
Perhaps the most important question facing the profession is not how many minutes AI can save, but how many revisions it can eliminate. Quality is not separate from efficiency…it is efficiency.
A report completed correctly the first time reduces friction, creates capacity, improves consistency and strengthens client trust. It also creates a better experience for everyone involved in the valuation process.
I believe the appraisal firm winners will deliver two things.
- Extreme service, what I call White Glove Velocity™.
- Mastering the Last Mile Advantage™, helping clients achieve better outcomes.
A significant reduction in revision rates may be one of the clearest ways to get there.