ValuNation Podcast Recap – Episode 1

In the first official episode of ValuNation, hosts Charlie Johnson and Michael Schwartz dive headfirst into the hot topic of alternative valuations. They break down the types, discuss their growing role in the appraisal world, and provide straightforward insights about how these newer valuation products are reshaping traditional appraisal practices.

🎧 Listen to the episode: Episode 1 on RSS
📍 Key topics: alternative valuations, desktop appraisals, hybrid appraisals, AVMs, market acceptance, lender adoption

Understanding Alternative Valuations

Michael kicks off the conversation by defining alternative valuations, clarifying what makes them different from traditional full appraisals. Alternative valuations include products like:

• Desktop appraisals – completed entirely from an appraiser’s desk using provided data and images.
• Hybrid appraisals – combining a third-party inspection or homeowner-submitted data with an appraiser’s analysis.
• Automated Valuation Models (AVMs) – data-driven, algorithm-based property valuation estimates with no human appraiser directly involved.

These methods offer efficiency and speed, especially in a rapidly evolving market.

Why Are Alternative Valuations Gaining Popularity?

Charlie explains that while traditional appraisals are thorough, they can be slower and more resource-intensive, particularly in fast-paced markets. Alternative valuations help address these challenges by shortening turn times, leveraging available technology, and streamlining workflow.

“We’re in a market where speed matters," Charlie emphasizes. "Lenders need quicker turnarounds, and alternative valuations offer exactly that.”

Challenges and Concerns from Lenders

While alternative valuation products have become popular, Michael and Charlie discuss why some lenders remain cautious. A major reason is trust—specifically, trusting the accuracy of appraisals performed without traditional inspections.

Charlie notes that lenders often question:

• The reliability of third-party inspections
• Accuracy of homeowner-provided photos
• Dependability of AVM-driven results

“There’s a hesitancy in fully trusting new valuation products," Michael explains. "Lenders are comfortable with traditional processes. They know them, trust them, and have built their workflow around them.”

When and Why to Use Alternative Valuations

Michael provides examples of when alternative valuations can truly shine:

• Lower-risk transactions: Refinances with low LTV ratios, HELOCs, or portfolio evaluations.
• Fast-moving markets: Situations demanding quicker closings or investment decisions.
• Non-complex properties: Homes with plenty of recent market comparables and no significant valuation hurdles.

They also clarify when traditional appraisals remain necessary—complex properties, higher-risk loans, or unique properties that AVMs simply can’t handle accurately.

How Nationwide Approaches Alternative Valuations

As employees of Nationwide Property & Appraisal Services, Charlie and Michael discuss their company's approach, which emphasizes balancing technology-driven efficiency with human oversight.

“We leverage technology to improve processes," Charlie says, "but we always maintain the human element. Every alternative valuation we deliver includes experienced appraiser oversight.”

This approach builds trust with lenders, combining the speed of modern valuation methods with the accuracy lenders require.

Industry Adoption and the Future Outlook

Charlie and Michael predict continued growth in alternative valuations, particularly as lenders gradually become comfortable with their reliability and benefits. They emphasize that it’s not about eliminating appraisers—it's about empowering them with new tools to work smarter and faster.

“Alternative valuations aren’t going away," Michael predicts. "They’ll keep improving, becoming more accurate, and ultimately more trusted by the industry.”

TL;DR – Episode 1 Takeaways

• Alternative valuations include desktops, hybrids, and AVMs, providing faster, tech-driven property valuations.
• Lenders appreciate the speed but often remain cautious about fully trusting alternative methods.
• Alternative valuations work best in low-risk, straightforward situations and fast-moving markets.
• Nationwide emphasizes a balance: technological efficiency combined with expert human oversight.
• The appraisal industry is increasingly adopting alternative methods, reflecting their growing accuracy and reliability.

📌 Stay Connected & Learn More

Keep gaining appraisal industry insights from Charlie and Michael through the ValuNation podcast.

👉 Listen to all episodes: rss.com/podcasts/valunation
📸 Follow us: @valunationpodcast on Instagram

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