Commission discusses data collectors and hybrid (bifurcated) appraisal work; staff says regulation would require statute

Commissioners took up a broader industry question during new business about third-party property data collectors and hybrid or bifurcated appraisal reports.

Several commissioners and members of the public described concerns that companies or individuals who gather measurements or photos on behalf of an appraiser can be presented to consumers as appraisers or otherwise create risk because the appraiser never saw the property. One commissioner said the problem is that the appraiser “has not seen that property” and that the appraiser cannot verify whether the data collector measured by ANSI standards or otherwise followed local conventions.

Staff and legal counsel told the commission that the board’s authority is limited by statute and regulation: the commission regulates appraisal practice and licensure; it cannot create a new licensing category for data collectors without a statutory change. Staff said that if a data collector crosses the line and “holds themselves out as an appraiser” or actually provides value conclusions, then the activity falls within the commission’s jurisdiction and could be the subject of a complaint. Otherwise, purely observational data collection without appraisal activity typically falls outside the commission’s regulatory scope.

Commissioners asked whether the commission could require background checks or certification for data collectors. Staff responded that such a requirement would be outside the board’s current statutory authority and would likely require action by the General Assembly or a change in administrative rule-making authority. Commissioners and staff agreed to monitor the trend and to address specific complaints as they arise; staff noted that enforcement frequently occurs after a complaint shows that a data collector crossed into appraisal practice.

Why it matters: The rapid adoption of hybrid appraisal workflows and third-party data collectors affects appraisal quality, industry business models and consumer perception. The commission said it will continue to treat complaints raising these issues under existing laws and encouraged appellants to submit complaints with specific facts.

Next steps: No formal action was taken. Staff and commissioners asked legal staff to continue tracking relevant complaints and to report back if a pattern emerges that would justify staff or legislative recommendations.