News

Valocity aims to cut valuation turnaround times

Property technology and data firm Valocity is working on new products to speed up valuation turnarounds, as processing times are hit by record housing demand.

Friday, April 09th 2021

The firm, which works with banks to provide accurate house prices to lenders and advisers, is looking at "hybrid solutions" that will combine data insights with work from human valuers.

“The need for additional ‘hybrid’ products is increasingly evident, where the expertise of a registered valuer is combined with the use of data and technology," said James Wilson, head of customer experience at Valocity. 

"Hybrid products could work in some locations, providing a more time and cost-efficient product for the end customer," he said.

Wilson said the firm was in discussions with banks about a hybrid valuation product that would place less strain on human valuers, as they struggle amid record market demand.

"Current market conditions have resulted in record levels of market activity, meaning significantly increased levels of valuations [are] required," he said.

"This naturally places capacity pressures on the valuation industry – and many other parts of the mortgage lending process – as they are now required to operate under sustained levels of high activity."

First home buyers with less than a 20% deposit currently require a registered valuation to obtain a home loan from the major banks. But advisers say clients are struggling to receive them on time.

Instant automated valuations are available for many properties, but some homes, such as new builds and those in areas with less available data, require more in-depth analysis.

Wilson told advisers to "watch this space", and said Valocity and the banks were "committed to driving change" and improving current turnaround times.

As turnaround times remain under pressure, Wilson advised brokers to keep in contact with Valocity and provide detailed information during the valuation process. 

"Don't just order a valuation, and leave it. Keep track of it, log in, check for updates, and include as much information as possible. If you need to get in touch with us, use the digital comments, the platform is designed to pick those messages up," said Wilson.

Comments

On Friday, April 09th 2021 3:30 pm Amused said:

I have two words for Mr Wilson – Commerce Commission. Valocity and their co-competitor CoreLogic are another pair of hands in the valuation process “clipping the ticket” They essentially now hold a monopoly on the valuation ordering process in New Zealand. Again the definition of a monopoly is “the exclusive possession or control of the supply of or trade in a commodity or service” Respectfully that is exactly what has happened to NZ consumers. The “customer experience” that Valocity and CoreLogic have introduced is that the cost of registered valuations have now become more expensive when they don’t need to be and they take longer to source. On both points the NZ consumer is clearly been disadvantaged when previously customers could simply approach an experienced local registered valuer themselves and source a valuation for their bank. Both panel valuation firms have also had the audacity to charge customers an “urgent fee” of $250 now for a registered valuation required within less than 4 days’ time. Valuers I know can typically complete a valuation within 3-4 days comfortably and would never charge a customer an “urgent fee”. The valuer either has the capacity to do the job or they don’t. So why have the panel valuation services now been allowed to start charging customers more for so called "urgent" valuations? These above delays (and added costs) would be completely avoidable if the panel valuation services were by-passed and the customer and their mortgage adviser at least given the choice of accessing a valuation either via the panel ordering service or going direct to a local experienced “panel” valuer. ANZ and Westpac up until May 2020 gave their customers the option of accessing a valuation either via the panel ordering service or going direct to a local experienced “panel” valuer. Both these two banks previously told the Commerce Commission that they would continue to allow all customers to have this option going forward when the panel valuation service was first introduced and on this basis the Commerce Commission ruled that the panel valuation service wasn’t anti-competitive. With both these banks now going back on what they promised this clearly needs to be revisited again by the Commerce Commission. With the Commission’s current focus on “cartels” perhaps this is timely. P.S. In terms of the “hybrid” products been talked about by Mr Wilson, Valocity and CoreLogic’s endgame with the panel valuation service has always been to gather property data been collected by registered valuers around the country and then use this data to provide additional services to the banks. Essentially they want to be like Veda (now Equifax NZ) who provide credit scoring data to all the lenders. Valocity and CoreLogic’s long-term objective is to circumvent the need for the majority of registered valuations been done currently which doesn’t bode well for the future of registered valuers in New Zealand. Make no mistake Valocity and CoreLogic are not the friends of valuers and it is disappointing that The New Zealand Institute of Valuers under the umbrella of The Property Institute of New Zealand, which is supposed to have all valuer's best interests at heart, has seen fit to endorse the services being offered by CoreLogic and Valocity.

On Friday, April 09th 2021 8:12 pm Veteran Charles said:

Amuzed...thank you for taking the time and effort to speak for so many [if not all] in the process. It reminds me of the lyrics of "The Last Cowboys Song" This is the last cowboy song The end of a hundred year Waltz The voices sound sad as they're singin' along Another piece of America's gone.

On Saturday, April 10th 2021 2:04 pm Two cents said:

The only way to legally breakup a legal monopoly (duopoly in this case) is to pressure the government to change the law and remove restrictions through deregulation. Best!

On Wednesday, April 14th 2021 12:44 pm Lender said:

As a person that receives the valuations and lends $. My issues looking from some of the other sides are Valuations are too expensive, $800-$1000 is pricey when compared to other countries, currently getting quotes for $2000-$3500 in urban NZ locations, this is robbery, maybe something for Comcom here, this both using providers talked about above and directly In a full valuation I get 48 pages of rubbish 10 pages of which are disclosures and limitations, infinite different formats from each different valuation company, and 2-3 pages which i'm actually interested in from a risk point of view (could be anywhere within those 48 pages ...should be in a summary but not always). Given that 90% of valuations are done for lending purposes why are they not in a format we actually want (yes heard all the blah blah about, PI insurances and the legislation being the oldest laws of the land) by keeping status quo just adds time and expense which is not good for any one. Whether the industry or providers come up with a uniform format I don't care Having valuation panels and accredited valuers using above providers does help lenders from a APS, quality and compliance aspect, would need to hire a whole team to manage this (cost to consumer) so there is a bit of outsourcing going on here and clipping the ticket pays for some of it. Something needs to give cause its far from ideal. Just because it is the way its always been done doesn't mean its right or the best way

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