Whether evaluating personal property, gems, jewelry or real estate, professional appraisers play a crucial role in determining the value of assets for buyers, sellers, and financial institutions. With growing interest in alternative assets which have multiplied 4x since 2010 to $17.2 trillion, appraisers have a new opportunity to re-define that appraisal business.
The process of developing accurate valuations requires a robust volume of reliable data which can be a challenge to access and prepare. These challenges range from data gathering, cleaning, quality assessment and integration. New advancements in artificial intelligence (AI) technology, offer innovative solutions for transforming the appraisal process and streamlining data-related hurdles. In this blog post, we'll explore ten data challenges appraisers encounter and how new Alt.Fn’s AI powered database solutions can help you overcome these obstacles.
1. Data Quality and Accuracy
The cornerstone of any appraisal is accurate and reliable data. Unfortunately, appraisers often face issues with data quality, such as incomplete or outdated information. Alt.Fn enables higher quality data with automated data validation processes, flagging potential errors, and cross-referencing multiple data sources to ensure accuracy. Even better for valuations, our predictive ML algorithms analyze millions of records from past appraisals to identify patterns and estimates that factor in several data points.
2. Data Integration
Whether you’re analyzing assets in the context of regional or global market hubs, having access to a wide-range of data from varying sources enables you to extend your appraisal coverage. Doing this manually is a highly time-consuming and error-prone task. Alt.Fn delivers transaction data from both major auction hubs (London, New York, Paris, Hong Kong, Geneva) and regional ones (Sydney, Los Angeles). With automated interactive data filters, you can access a wide range of data from various platforms and formats seamlessly. By streamlining data integration, we empower you to focus on appraisal analyses and valuation rather than data gathering.
3. Data Standardization
Considering the wide volume spanning across various regional markets, asset types, companies and data reporting styles, it can be difficult to transform all datasets into standard formats. Get the benefits of innovative data science without having to prepare datasets yourself. Our AI-driven data normalization tools automate the process of converting data into standardized formats and units, facilitating seamless data comparisons and helping you to increase appraisal efficiency.
4. Subjectivity in Data Interpretation
Interpreting data can be subjective, leading to variations in appraisal outcomes. Alt.Fn helps you develop objective valuations with machine learning algorithms that learn from historical appraisals and market trends to enhance the consistency of valuation outcomes. Use the power of millions of records to get the specialized appraisals your clients depend on.
5. Data Volume and Complexity
With verifying types from art, jewelry, luxury items, wine, whisky and more, the range of alternative assets data is vast and diverse from structured data (e.g., property attributes) to unstructured data (e.g., images and text). Alt.Fn excels in processing and analyzing large volumes of data quickly and effectively. Advanced AI algorithms can analyze images to identify property features and text data to extract valuable insights from market trends and news articles, empowering appraisers with comprehensive data-driven analyses.
6. Infrastructure and Data Management
It’s expensive and complex to store and process large volumes of data and process with cloud computing capacity. Save on the costs by managing data and pay for only what you need with access to alternative asset market datasets for 50 categories of assets in multiple international regions. Alt.Fn delivers real-time streamed data for you to access relevant information and increase productivity for a more profitable business.
7. Market Volatility and Data Variability
As investors continue to expand deployed capital into alternative assets, the $170 trillion of alternative assets pool will continue to grow. With financial managers, insurance companies, and other fintech businesses providing complementary services, appraisers will be an increasingly important role in shaping how assets are valued. Alt.Fn’s real-time database systems track ongoing market fluctuations and provide insights to help you stay ahead of the curve.
As the professional appraisals industry continues to evolve, the data challenges for appraisers will persist and widen the gap between the market leaders and laggers. Robust AI-powered solutions like Alt.Fn offer transformative capabilities to tackle these challenges head-on. From improving data accuracy and integration to streamlining data management and analysis, we empower appraisers with unprecedented tools for making well-informed valuations. By embracing the solutions, you can enhance the efficiency of your appraisal process but also provide more accurate and reliable property valuations, benefiting clients, stakeholders, and the growing alternative assets industry as a whole.