How technology is redefining accuracy and speed in CRE appraisals

By Jay L. White, MAI, CRE®, Apex Realty Advisory

Technology and the advancement of artificial intelligence (AI) are changing the landscape across all industries, and commercial real estate is no exception. Technology known as proptech is impacting every facet of the commercial real estate industry, including appraisals. Commercial appraisals are evolving from routine paperwork for lenders and underwriters into a core element of deal investment strategy where speed, accuracy, and data clarity all drive competitive advantages. AI, like any other tool, is starting to play a more prominent role in achieving those goals.

Nationally, appraisers produce more than half a million property valuations each year for commercial properties. Using traditional methods, many stakeholders wait weeks for appraisals, but technology being used by several appraisal firms is proving that precision doesn’t have to come at the cost of effectiveness. The use of AI, data analytics, mobile devices, integrated comparable data databases, and digital tools are all employed to enhance accuracy and productivity while improving transparency and objectivity. The speeding up of organized market data analysis to arrive at appraised values can be compressed from weeks into days, allowing for a swifter delivery of valuations to expectant clients.

Speed, precision, and proficiency all benefit lenders and investors in terms of gaining clarity through faster-produced asset values. This is highly beneficial to lenders and investors as it permits them to make business decisions at a more rapid pace, which has positive impacts on commercial real estate from sales volumes to loan underwriting. The result is a process that’s not just quicker and more open but also more consistent, helping everyone involved to make more informed, confident decisions in less time.

This technological shift comes at a crucial moment. Deploying capital wisely is important, especially as interest rates remain high and liquidity is hard-won. Every delay now carries opportunity cost. By rethinking how appraisals fit into the broader deal timeline — and by embracing technology that enhances both accuracy and speed — brokers, lenders, and owners can turn what was once a logjam into a differentiator. Technology, digital tools, and advanced analytics can help appraisers better understand the factors influencing property values, improving efficiency and thus streamlining the appraisal process significantly. Doing so will better match the pace for how modern real estate deals get done and improve customer service.

Given these advancements in technology, the role of the appraiser is being redefined. However, it is important to remember that technology-driven appraisal reports need to provide clear, concise data in presenting trends and analysis that supports their reported final value conclusions without ambiguity. It’s a tool to enhance and improve the appraisal process; a savvy appraiser will capitalize on the advantages AI can offer.

While AI technology can be extremely beneficial to the appraising process, it’s not a replacement for a knowledgeable, expert human appraiser. Appraisers are using AI and other tools to supplement their skills to elevate and improve their appraisal processes so they can focus on the more complex aspects of the valuation process. However, it still comes down to the appraiser making the value judgement calls and forming the final value opinions. The combination of technology and human judgment is leading to more reliable, transparent, and efficient real estate appraisals for the user of appraisal services.

Jay L. White, MAI, CRE®, is the founder of Apex Realty Advisory in Wilmington, DE.