20 Minute AI Appraisals Are Coming

[George Hatch]

Of course it will. Information is power - and AI has already transformed the information availability space. You could personally tell Claude to write you a code script in Python or R - you no longer need to know how to code. Same applies to any other kind of information. The only thing preventing AI from being able to perform this service is - again - an asymmetry of information. AI doesn't have access to lender pricing algorithms. A bit like the GSE's not having access to MLS data in the past. They'll solve for that quickly enough, though - just like the GSE's did.

95% of what we do in an appraisal assignment is wrangling the information. Not actually analyzing it. The whole hybrid controversy demonstrates the concept. Insofar as (only) collecting and formatting the factual data, that function doesn't require any individual training or experience in analyzing that data.

It's not now and it's not certain, but the potential is there. The more expensive human labor gets the more economic incentive there is to leverage the use of human labor with technology. Even in the trades. Robot 3D "printers" building concrete shells and the framing for the room partitions. I don't think they're laying the foundation or doing the roof yet but its just a matter of time before they do.

https://www.cnn.com/style/texas-3d-printed-home-icon/index.html

 

[George Hatch]

Most people look at the interaction between tech/humans as the adaptation happening solely on the tech side instead of the human side. But the process can be modified a bit in the other direction - humans adapting to what the bots provide. Look at the 3D houses, for example. They use rounded corners in their designs in part because of their process. The rounded corner on the exterior shell is physically stronger than a 90* corner and it doesn't cost them extra to lay it that way. The design itself has been adapted to the tech.

If someone wants to build a 3D gun they can adapt the design to the strengths of the 3D printer AND the material the printer uses. There's no reason to copy what the firearms mfgs are doing except to stick to designs that are proven.

-------------

To elaborate on the appraisal function consider this alternate future

RE Broker engages a 3rd party inspection company right when they list the property. Same day. It's part of their listing procedure.

Bots-R-Us has a pizza delivery order in the same neighborhood and sends out a self-driven Tesla cube (speed limit at 50mph) that drops off a 6-legged U.S. Robotics type robot with 360* imagery and Cubi-Casa measuring and data collection capabilities. The bot assembles and uploads their inventory from the site at the end of their inspection. Wireless transmission into the cloud, as they say. The AI at Bots-R-Us compiles the data from the Bot's inventory and populates a UAD 3.6 report appraisal format before the Tesla leaves the site. Bots-R-Us buys and maintains the bots so that function is delegated to those specialists, not to some consumer. Nobody is touching the bot or controlling what it does/doesn't "see" except for the Bot company. Bots-R-Us doesn't care what any of the principles in the transaction are trying to do, and neither do any of those bots.

Property goes under contract and loan application is made. Lender adds the contract info into the UAD and engages an appraiser to perform the appraisal. Appraiser uses their own version of DataMaster 5.5 which includes it's own statistical modeling and access to all the Bot inspections in the entire town. The independent fee appraiser's AI spits out their own appraisal report populated with an SC adjustment grid with 10 or 20 comps. The appraiser proceeds to go through the data reporting for those 10 or 20 and eliminates the ones they think detract from the analysis due to being less directly comparable. In terms of time/effort that editing process is little different (except in detail and objectivity at the data disclosures end) from when an appraiser scrolls through 20 listings in an MLS query. Except that THIS dataset has been compiled in a uniform format so the appraiser doesn't have to go on the easter egg hunt to find the locations of the various details they're looking for in these datapoints.

So how long does it take for the appraiser to *edit* a prefabbed UAD when they have direct access to every pic, every comment, every inconsistency between the 06/2025 inspection from Bot#274 and the 05/20/2025 inspection from Bot#312, and so forth. How long to test adjustment factors, follow up with additional inquiries on a specific datapoint, develop their opinions and conclusions and to write those summaries?

However many hours+minutes it takes to do that, THOSE are the minutes that are worth $100/hr or whatever else the market will bear to the lenders. The driving minutes and the measuring minutes and the data entry minutes performed by other individuals or other Bots have costs vs value, too; but not at the same hourly rate as the appraiser minutes.

 

[alebrewer]

I kind of think that's gonna be the 'secret sauce' in the new forms. Of course it's speculation, but by the time they actually roll out, I think the technology will be in place to autofill the bulk of the form - the 'wrangling' as you put it. The appraiser will just be validating that the info is correct, then analyzing the (then) formatted data and reporting on it. My guess is that the new forms will actually take less time, not more. Chi lo sa, pero.

 

[chad hampton]

Can you imagine the crime and the level of civilization collapse if you remove work and purpose from people’s lives?

This idea that society wants to sit on their *** and play video games all day couldnt be farther from the truth. Sure, that’s what children and deadbeat young adults want, but most of us are driven. That’s why we wake up every day.

 

[NC Appraising]

I kind of think that's gonna be the 'secret sauce' in the new forms. Of course it's speculation, but by the time they actually roll out, I think the technology will be in place to autofill the bulk of the form - the 'wrangling' as you put it. The appraiser will just be validating that the info is correct, then analyzing the (then) formatted data and reporting on it. My guess is that the new forms will actually take less time, not more. Chi lo sa, pero.

100% agree.

Hybrids, per the GSEs were developed to allow for the appraiser to put more emphasis on market analysis, developing adjustments, etc.

I think it will back fire. Appraisals will just become a data dump and appraisers will just use comps and adjustments given to them by the software provider.

It will be a pump and dump 5 minute avm appraisal from a national firm that has 2-3 appraisers in different states working on it.

Can't wait for the pushback from re agents when they get this Avm signed off from an appraiser appraisal....called a hybrid.

True tracts has something close, but you have to be an employee to gain access to it.

NightHawk™ - Appraising Reimagined | Bradford Technologies, Inc.

www.bradfordsoftware.com

https://www.aivre.com/

When it's all said and done, just order a avm with a pcr.

 

[alebrewer]

Player Piano by Kurt Vonnegut explores this idea in a REALLY engaging manner.

 

[J Grant]

I kind of think that's gonna be the 'secret sauce' in the new forms. Of course it's speculation, but by the time they actually roll out, I think the technology will be in place to autofill the bulk of the form - the 'wrangling' as you put it. The appraiser will just be validating that the info is correct, then analyzing the (then) formatted data and reporting on it. My guess is that the new forms will actually take less time, not more. Chi lo sa, pero.

Auto filing a form is not wranging the information - I am not sure what he meant by that, perhaps deciding what sales to use etc - either human judmtent and epseirnce witll be valued or it will not - IMO the downsides of tech wrt hacking, algorithms set to favor outcomes, the limits of AI etc will always create a need for human analysis, experience and dare I say ethical input- unless the social fabric completely unravels .

 

[alebrewer]

Auto filing a form is not wranging the information - I am not sure what he meant by that

He meant what he said - most of the time developing an appraisal report is spent regurgitating facts, not analyzing data. If you don't like the term 'wrangling', insert any term that makes you happy. No one is forcing you to adopt GH's verb choice.

 

[cashcatz]

He meant what he said - most of the time developing an appraisal report is spent regurgitating facts, not analyzing data. If you don't like the term 'wrangling', insert any term that makes you happy. No one is forcing you to adopt GH's verb choice.

100% this. Even now, in 2025 - there's so much data duplication and time wasted moving data. That's now where the value is added (pun intended).

 

[J Grant]

He meant what he said - most of the time developing an appraisal report is spent regurgitating facts, not analyzing data. If you don't like the term 'wrangling', insert any term that makes you happy. No one is forcing you to adopt GH's verb choice.

I do not find that true at all. What is regurgitating facts—typing info on the form? There are auto-fill programs now, and whether one uses them or not, typing itself is a minor time element. Most of my time is spent poring over the data of sales and listings, maybe calling folks to verify, and OMG—actually THINKING and analyzing—perhaps a foreign concept to you. Which facts to use, how to reoncle them with the MV filter etc.