20 Minute AI Appraisals Are Coming

[Terrel L. Shields]

The retail value of tomatoes at the Piggly Wiggly doesn't economically justify the use of expensive solutions for pest control

For an example, people are terrified of Roundup® which is about to be discontinued by Bayer. Not that there is zero evidence of harm from any study that is deemed not flawed. But for the average household, using 30% vinegar basically will kill anything Roundup does. Problem is for a clean up around the flower bed it's economical but at $20 a gallon, its about half the cost as generic herbicides like Roundup. But instead of covering a few yards, a gallon of Roundup will cover 2 or 3 acres cost about $15/acre. Vinegar would cost you about $300 per acre.

 

[NC Appraising]

Fwiw, I hope Braford succeds. I use Alamode, but IFAs needs something to be able to compete with true footage, rsds, opteon, aloft, etc.

If IFAs cannot find a way to complete appraisals in 1-3 days you won't have any of the hybrid business. You'll be stuck with the left over 1004 complex and value issue appraisals. If you can stomach the ROVs or are a number hitter you'll be fine.

 

[NC Appraising]

For an example, people are terrified of Roundup® which is about to be discontinued by Bayer. Not that there is zero evidence of harm from any study that is deemed not flawed. But for the average household, using 30% vinegar basically will kill anything Roundup does. Problem is for a clean up around the flower bed it's economical but at $20 a gallon, its about half the cost as generic herbicides like Roundup. But instead of covering a few yards, a gallon of Roundup will cover 2 or 3 acres cost about $15/acre. Vinegar would cost you about $300 per acre.

Some
Weeds are becoming resistant to roundup.

many weeds have become resistant to glyphosate, the active ingredient in Roundup. This resistance is a natural evolutionary process where weeds develop the ability to survive and reproduce after exposure to herbicides that previously killed them

 

[Mejappz]

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.

Most appraisers are unlikely to adopt these types of services. While some will incorporate AI to varying degrees, these two programs attempt to reinvent how appraisals are traditionally conducted. In my experience, appraisers are generally resistant to change, especially when it comes to how reports are written and completed.


If you look at some of the software providers and their demo videos or screenshots, you'll see that many are using a pick-list system where the form dynamically adjusts based on the assignment type. This approach likely stems from the recognition that most appraisers are reluctant to adapt to new workflows.


Additionally, as I’ve mentioned before, many appraisers struggle with even basic tasks like downloading a CSV file from their MLS—let alone manipulating that data for meaningful analysis, which is essential for accurate appraisal work. You can thank TAF and the so-called "CE" providers for that.

 

[George Hatch]

For an example, people are terrified of Roundup® which is about to be discontinued by Bayer. Not that there is zero evidence of harm from any study that is deemed not flawed. But for the average household, using 30% vinegar basically will kill anything Roundup does. Problem is for a clean up around the flower bed it's economical but at $20 a gallon, its about half the cost as generic herbicides like Roundup. But instead of covering a few yards, a gallon of Roundup will cover 2 or 3 acres cost about $15/acre. Vinegar would cost you about $300 per acre.

I will obviously defer to your competency on this because I'm vegetation illiterate. I have a black thumb, not a green thumb. We can't even keep a plastic fern alive in this place.

 

[Terrel L. Shields]

Some
Weeds are becoming resistant to roundup.

many weeds have become resistant to glyphosate,

The stupidity of allowing companies to create "Roundup Ready" corn and soybeans means issues with any number of weeds - "pigweed" (amaranth) has become especially resistant to Roundup(glyphosate). It was a stupid mistake by the EPA to allow "Roundup Ready" anything. There is no real replacement for it. Dicamba drifts very easily - There is no real alternative that is economical (yes, dawn soap and Vinegar works but at what cost? Dawn is a surfactant and Vinegar is acetic acid)

The EPA generally considers glyphosate, the active ingredient in Roundup, as safe for human use when used according to label directions. However, this stance has been challenged by the World Health Organization's International Agency for Research on Cancer (IARC), which classified glyphosate as "probably carcinogenic" to humans​

what a joke. It is "probably" carcinogenic but zero proof after 50 years of testing. EPA tests it every 5 years by law. WHO assumes it is for no other reason that they believe all pesticides are toxic to humans.

 

[George Hatch]

As for appraisers incorporating additional tech solutions I think that comes down to financial incentive. They'll do it if/when it costs them not to do it. They won't do it just to do it. IMO

 

[J Grant]

The home gardener only uses hand tools and hand labor. The retail value of tomatoes at the Piggly Wiggly doesn't economically justify the use of expensive solutions for pest control, let alone any automation. They might even be losing money if they include the value of their own labor at their normal hourly rate. The professional farmer uses $1M combines and aerial spraying and such. At the industrial scale small improvements in efficiencies add up.

Same in the lending business. If you were a high-volume lender and were operating at the industrial scale .....

However much time the appraisers spend (just) writing 90% of the report, if you could pay for those hours at 1/10th of the rate the appraisers charge you would do it. However many hours time appraisers spend on making appointments and completing the field work, if you could pay for those hours at 1/3 the rate the appraisers charge you'd do it. When the scale is measured in the hundreds or the thousands, it doesn't take very long to offset the initial implementation costs. The math is the math.

The service we sell isn't any more sacred or significant to the economic well being of our society than any other form of accounting or due diligence. The "we're special" pixie dust wore off a long time ago. The use of 90% boilerplate in 90% of the appraisal reports demonstrates that much. I wish we were special, but we're not.

The lender doesn't pay for the appraisal; the borrower does .
So the lender does not save anything with a cheaper valuation
And an appraisal is a professional service, it is not a retial mass produce or mass sale consumer item -and last I heard the US taxpayer was not back stopping the tomatoes -

 

[glenn walker]

J.G. has repeated numerous times about why would 20 minutes of time saved matter ? That's a 33% savings and in a large labor force or on a Nationwide scale it's a staggering gain.

The biggest problem with most appraisers is as one or maybe two
person operations their business analysis is focused on themselves and not the interconnection their part of.

If Bigger Bank USA has 10,000 loan related employees their all on an assembly line, and the faster they receive completed appraisals the quicker that assembly line moves.

Finally Multiplying that 20 minutes by thousands of reports moving through the interweb portals to the lender's production line equates to hundreds of millions in savings.

When One Appraiser Saves 20 Minutes it's up to a 33% multiplier if that report is delivered faster. The Ford assembly line isn't waiting for the last hubcaps to be delivered.

 

[George Hatch]

The lender doesn't pay for the appraisal; the borrower does .
So the lender does not save anything with a cheaper valuation
And an appraisal is a professional service, it is not a retial mass produce or mass sale consumer item -and last I heard the US taxpayer was not back stopping the tomatoes -

We've been over this 100 times. At that industrial scale ABC bank competes for the same deals with XYZ bank across the street. If XYZ can deliver for $25 less in fees then that gives them a competitive advantage. ABC's alternative is to either compete on similar terms or to just cede the business to their competitor. Because if ABC won't do it their borrower will just go find XYZ who is doing it.

Sounds exactly how a large percentage of appraisers compete with each other for the AMC assignments, doesn't it? That's because it is similar.

Since you are constantly reading to respond and seeking the exception to the rule as if that is a meaningful response, I have to qualify the generalization. As a group and in most cases cases an ABC operating at the industrial scale is generally going to decline to hold the line and lose business to the competing XYZ for the sole purpose of making their fee appraisers happier. If it were otherwise nobody - including you - would be constantly complaining about the high percentage of AMC users.