20 Minute AI Appraisals Are Coming

[timd354]

I totally disagree with you. I will believe it when I see it.

It does matter if you beleive it, it only matters if the lenders and the regulators believe it.

 

[J Grant]

Lenders are not going to care that you don't think that an AI generated appraisal should be called an appraisal.....if and when lenders determine that AI generated appraisals are reliable and are cheaper/more efficeint than human appraisers, then lenders are going to use AI, it is as simple as that. I don't think human appraisers will be totally eliminated....they will still be needed for atypical properties and properties in rural areas with little available sales data (rural mortgages are <10% of total mortgae volume), however, AI is very likely to replace human appraisers at some point in the future when it comes to the valuation of most condo units, and tract homes. I wish this was not the way it is going to be, but hopes and wishes are of no value.

An appraisal is an opinon (USPAP)

Unless they make AI bots into a human that can form opinions and users agree to that, then AI alone can not produce an appraisal. Appraisers should know that. Stop calling it an appraisal. if AI alone does it - it would be a valuatoin[

 

[J Grant]

What is the definition of an appraisal per USPAP?? Some of you need to look it up.

 

[BRCJR]

What is the definition of an appraisal per USPAP?? Some of you need to look it up.

It will not matter what you call the "valuation product". Lenders will be able to use it for a lending decision. So, what difference will it make what name is used?

Would calling it an Automated Appraisal make it better?

 

[timd354]

An appraisal is an opinon (USPAP)

Unless they make AI bots into a human that can form opinions and users agree to that, then AI alone can not produce an appraisal. Appraisers should know that. Stop calling it an appraisal. if AI alone does it - it would be a valuatoin[

Why do you think lenders care about USPAP or whether you (or anyone else) calls an AI-generated valaution an appraisal or some other term?

 

[cpursley]

I wish this was not the way it is going to be, but hopes and wishes are of no value.

Yeah, track home appraisals in markets with enough data (public property details, comps, environmental, vehicle traffic numbers, sound pollution metrics, local economic trends, etc) are going the way of the dodo. But still, a good number of properties are not that. Not to mention commercial.

 

[J Grant]

Why do you think lenders care about USPAP or whether you (or anyone else) calls an AI-generated valaution an appraisal or some other term?

The law and regulations for taxpayer-backed lending.

 

[J Grant]

Why do you think lenders care about USPAP or whether you (or anyone else) calls an AI-generated valaution an appraisal or some other term?

Again, what is the USPAP definition of an appraisal? USPAP is our professional standard. That is why we should "care."

It seems that some lenders might care more about a valuation meeting a USAP standard for fed backed loans then some appraisers here do - which is embarrassing.

 

[timd354]

The law and regulations for taxpayer-backed lending.

If you think laws and regualtions are going to stop AI from taking over the a good part of the valaution sapce, then you are supremely naive.

 

[timd354]

Again, what is the USPAP definition of an appraisal? USPAP is our professional standard. That is why we should "care."

It seems that some lenders might care more about a valuation meeting a USAP standard for fed backed loans then some appraisers here do - which is embarrassing.

I am not saying that you should not care, what I am saying is that the people who are by far the largest source of business for most appraisers (lenders) are not bound by USPAP and simply don't care what an AI generated valaution is called and that is what actually matters. The residential appraiser whose skills and business are limited to appraising mostly non-complex proeprties are the modern equivalent to buggy-whip makers circa 1900.