As a result of the COVID-19 pandemic, our way of life has changed. The government has not only implemented stringent quarantine measures but also have ordered the closure of commercial establishments, nearly halting most economic activities. With these drastic changes, business and consumer behavior have certainly shifted. Thus, in order to survive and remain relevant, firms must adapt to the new normal. The Real Estate Valuation industry is no exception.
The main service of this industry lies in determining the value of real properties as assessed by a licensed real estate appraiser. This is usually done by conducting on-site inspections wherein the appraiser tours around the property while taking note of the distinct features which drive its value. The appraiser then performs interviews with on-site personnel to understand the characteristics of the property, as well as the local market wherein the property is located at.
However, with the current quarantine restrictions in place, one would question how the industry would survive given its heavy reliance on on-site inspections to perform its main service? Will this pandemic paralyze the valuation industry? How can a property be properly evaluated at a time when most professionals working in non-essential industries are prohibited from leaving the safety of their own homes?
The answer: Virtual Inspection
Virtual Inspections are conducted through online video conferencing applications such as Zoom, Facebook Messenger, Microsoft Teams, Skype, and the like. The process of visually inspecting the property, conducting interviews with property custodians, and verifying the pertinent documents are performed through a video call with the assistance of on-site personnel.
In terms of the process and procedure, virtual inspections are almost similar to how actual inspections are originally conducted. The only difference is that licensed appraisers can carry this out while working from home, which is a crucial capability to operate effectively during this global health crisis.
Aviso Valuation & Advisory has successfully conducted the country’s first virtual inspection for valuation purposes. This innovative approach to the valuation process ensures the safety of both the property appraisers and their clients’ representatives as it eliminates the risk of possible exposure to the highly infectious disease.
This virtual inspection was conducted on a multi-storey commercial office building in Bonifacio Global City, Taguig. The current state of its leasable areas and its machineries were easily observed during the virtual inspection. Examining these provided supports to the appraisers’ assessment of their property value. While the team of Aviso was preparing for possible issues such as an unstable internet connection, the virtual inspection went off without a hitch. No major issues were encountered, and the internet connection only dropped once during the hour and a half video call, and this was only when the on-site personnel took a ride in the elevator.
An actual virtual inspection conducted via Zoom with Aviso Valuation’s appraisers and the client and property manager
While this is one of the best examples for a well-executed virtual inspection, Aviso remains prepared to deal with any unexpected interruption or technical difficulty resulting from an unstable internet connection. Should any such problem occur, the alternative to virtual inspection is for on-site personnel to take prescribed photos and videos of the property, with special guidelines as to which areas to cover based on the provided floor plan, as well as how to properly angle and position the camera for a proper photo.
“Our clients have asked us on how we can proceed with the valuation of their properties since most of them are preparing for the financial report submission. Our team has carefully and creatively thought of different ways to conduct site inspections amid the community lockdowns and we ended up taking advantage of technology, hence, using online platforms for virtual inspections. The world is changing, and so should we.” said by Mr. Angelo Gandia, the Head of Business Development.
This is a prime example of how an industry can minimize the economic impact of the pandemic with readily available technologies. Similar methods and may be adopted by other industries to ensure business continuity, while complying to the guidelines of community quarantines. In this unique time in modern history, firms must devise flexible and innovative ways to overcome the challenges a quarantined society presents, and virtual inspection is one such way.
Written by: Christian Tiongson
