HouseCanary Presentation to the National Association of Home Builders
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Transcript of HouseCanary Presentation to the National Association of Home Builders
Accurate New Home Appraisals Are a Critical Priority
2 Source: NAHB Housing Market Index - Special Questions on Most Significant Issues Builders Face, January 2015
69% 68% 58% 58%
49%
0%
25%
50%
75%
100%
2011 2012 2013 2014 2015(e)
Percent of respondents
Over 50% of NAHB Respondents Identify Inaccurate Appraisals as Most Significant Problem Builders Face
3
A History of NAHB Involvement and Leadership on Appraisal Issues • Began in 2009, Immediate Past Chairman Sandy Dunn and Chairman Joe Robson held Appraisal Summits.
Appraisal Working Group (AWG) Formed in 2012 • Co-Chaired by NAHB Chairman Barry Rutenberg and Past Chairman Joe Robson - 2012
• “A Comprehensive Blueprint for Residential Appraisal Reform” - February 2013
Identified increasing available data to improve the accuracy of new home
valuation by appraisers as a key priority
RFI/RFP with Industry-Leading Data & Technology Companies
Final Recommendation & Appraisal Task Force (ATF) • Proposing strategy to partner with HouseCanary
NATIONAL HOME CONSTRUCTION DATABASE
Powered by
Objectives for NHCD
More accurate new home appraisals
Additional data provided to those members who participate
NAHB and member groups generate non-dues revenue
4
HouseCanary Team In Attendance
5
Partner & Managing Director,
The Boston Consulting Group
• Led Homebuilding & Real Estate
• Deep experience advising Fortune
500 & PE firms
Prior
• Marakon Associates
• Arthur Andersen (CPA)
Education
• MBA, Wharton, University of Penn
• BS, USC– Summa Cum Laude
Jeremy Sicklick CO-FOUNDER & CEO
PhD Candidate, Applied Statistics,
University of Texas at San Antonio
• Dissertation Topic – Dynamic Models
of Financial Risk
• Other Research– Bayesian Hidden
Markov Models, Bayesian Decision
Theory, Dynamic Time Series
Prior
• California Economic Forecast
Education
• MA, Economics, UC Santa Barbara
• BA, Economics, UC Santa Barbara
Chris Stroud CO-FOUNDER &
CHIEF OF RESEARCH
Regional Vice President, Strategic
Marketing, PulteGroup
• Led strategic planning and
acquisition underwriting
• Emphasis on decisions through
data-driven decision-making
Prior
• Hewlett-Packard
Education
• MMC, UGA – Magna Cum Laude
• BSBA, UTulsa – Cum Laude
JP Ackerman PRESIDENT, STRATEGIC REAL
ESTATE PRODUCTS
Vice President, Product
Management, QUMU
• Managed product roadmap,
business case analysis, product life
cycle for twelve products
• Achieved product leadership
position in Gartner Magic Quadrant
Prior
• NCAST
• Cable & Wireless
Education
• MBA, Fuqua, Duke University
• BA, Economics, UC Santa Barbara
Chris Zaloumis VICE PRESIDENT,
PRODUCT STRATEGY
HouseCanary Overview
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The most objective, consistent, and
efficient way to appraise homes
The most advanced tool for
real estate professionals
Silicon Valley, CA based
Big data tech &
analytics for real estate
Deep experience
building and managing
data-driven software
7
All in one from an iPad • Communication • Data integration: Market data, property data, maps • Photos, Property measurement • Comp analysis, adjustments, valuation
Flips the focus onto value
• From 90% time on form filling to 90% focusing on appraising value & risk
Scientific analytics at your fingertips…no PhD degrees needed
• Valuation and quantified comps analysis
• Analytically derived value adjustments
• Value drivers and hierarchy
Leave your work at the job site
• Enter the site, do what you need to, submit in just 30 minutes
Seamless, paperless integration
• Links to UADP forms in MISMO format
• All mobile, all paperless, all stored in the cloud
• Platform is 'form' agnostic, streamlining the production of alternative valuation products
New Home Construction Database (NHCD)
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Feedback Loop creates increasing value and sustainability of solution
Better Investment Decisions
• Location
• Land Investment
• Product Design
• Pricing
• Demand / Absorption
• Competition (active / future)
Better Appraisal & Valuation
• Comps for Appraisals
• New Home Valuation
• Content Valuation
• New Home Marketing
• Data Feed Sales
Better Manage the Business
• Build Schedule
• Lot Premium
• Options
• Cycle time
• Sales
• Cash flow
NHCD & Absolutes for Success
9
þ Builder-centric tools that add value
þ No duplication of effort for builders
þ Timely distribution of new home closing data
þ Incentives to adopt among members / NAHB
þ Sufficient coverage of comparables for appraisers
þ Streamlined delivery of closing data to appraisal community
þ Data security through anonymization, encryption and audits
NHCD Will Continuously Improve With New Data
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Integrated NHCD Tool Better
Investment Decisions
Better Manage Business
Better Data With NHCD Database
Better Appraise
New Homes
Better New Home Information
2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52
Full Project Rollout
12
Jan 2015 Dec 2015
Phase 1
Phase 2
Phase 3
4 weeks: Architect, test w/users, design
2 weeks: Spec, plan, and define MVP
4 weeks: Development and testing
1
2
3
4
5
6
7
8
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
10 weeks per module
• Establish a user panel to optimize design in beta phase
• Project broken into smaller chunks
• New features going live on an ongoing basis
• HouseCanary will partner with local HBA’s to train
NAHB USER INPUT ON DESIGN
Jun 2015
NAHB & HouseCanary Help Members Save
13
• Reduce gap in new home appraisals
• Optimize the product built and features within to
maximize pricing power
• Optimize timing of investments geographically to
maximize returns and mitigate losses
• Increase efficiency of marketing, sales and
procurement of building materials
• Enhanced management tools to save time and enhance
productivity
Improved Appraisals
Enhanced Positioning
Improved Land Investments
Materials Market Place
Management Efficiency
A Large Revenue Share Opportunity for NAHB
14
• Fee per record from NHCD and increased share from new homes appraised using HouseCanary Appraiser
• Shared revenue from derivative product sales via Blueprint. Scalable product live Q4 2015.
• License fees for non-participant builders and users
• $42B market. Building framework to market and source materials. Revenue share on all member transactions
Appraisals
(Non-Participating)
Materials Market Place