With the introduction of the property data collection (PDC) program by Fannie Mae and Freddie Mac, people without appraisal licenses or certifications can now perform site visits to collect information. This has raised much concern in the appraisal profession, so we wanted to address these concerns. To provide some clarity, we’re looking at the myths about PDC and clearing them up.
Myth #1: PDC is the same thing as property appraisal
As a professional appraiser, you know very well that what a property data collector does is not the same as what you do — even if your clients don’t always understand the difference. While there is some overlap, being qualified to perform an appraisal requires much more training, education, and expertise, and the job goes far beyond gathering physical data.
A property data collector’s job is very observational and fact-based. They visit a property in person and collect many standardized data points and photographs – things like what building materials are used, floor plan information, and the utilities connected to the property. While this type of physical data gathering does overlap somewhat with the on-site property visit performed by an appraiser, it represents only a fraction of the appraisal process.
An appraisal, on the other hand, is much more analytical and far more detailed, taking into account property upgrades, market conditions, and numerous other factors. An appraiser’s job is to develop and report a professional, unbiased opinion of value based on their observations of the property as well as their understanding of buyer’s preferences and expert analysis of the local real estate market.
Myth #2: Data collectors are going to replace appraisers
There’s a lot of buzz right now about PDC possibly replacing traditional property appraisal, but the intent of this service is to fill a gap in the lending process. The job assignments given to property data collectors are often the types of assignments that…