4 Myths About Property Data Collection
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.
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 wouldn’t come across an appraiser’s desk. For example, property data collectors (PDCs) may be engaged by lenders for very low-risk loans where an appraisal is not required.
Myth #3: PDCs are not properly trained or qualified
While there isn’t a license, PDCs are still required to be trained and competent to do their job. Both Fannie Mae and Freddie Mac require that PDCs must be professionally trained and vetted. They must adhere to Fannie Mae or Freddie Mac’s property data standards which set forth the minimum requirements for collection of the subject property data.
Myth #4: PDC is bad for appraisers
Probably the most prevalent myth is that PDC is bad for appraisers and bad for the profession in general. But in actuality, it may offer some significant upsides for appraisers. In particular, becoming a property data collector may be beneficial for:
- Appraisal trainees in need of extra income
- Busy appraisers who are looking to delegate tasks
- Older appraisers who are looking to reduce physically demanding tasks or may be transitioning into retirement
- Any appraisers wanting to grow their bifurcated and hybrid appraisal services
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My comments: We all know that appraisers would be the best PDCs. My article in the November issue of Appraisal Today has lots of information, including lists of which AMCs use PDCs. “Property Data Collectors (PDCs) Will Be Widely Used by Lenders in the GSEs Value Acceptance + Property Data Option”
This is an excellent diversification opportunity while business is slow. Trainees can do them.
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NOTE: Please scroll down to read the other topics in this long blog post on Liability, Bias, reviewers with little experience, GSE modernization, unusual homes, mortgage origination stats, etc.