AI Generated review conditions?

[Tom4value]

I have to say, all of those “stips” are legitimate questions. I was taught from my time as an itty bitty appraiser to anticipate questions and answer them THE FIRST TIME in the sales comparison comments.

All of those things would cause me to think, “wha, oh! Better find comps for those!” If you can’t find comps for those, at least find sales that have those things and compare them to similar sales so you can derive an adjustment or not adjustment. Then say what you did! You did the work. Brag about it!

One thing I have learned is if you address things the first time, you get a lot more leeway then having to address them after they ask.

 

[TC]

The reverse appears to be the case.

It looks like the OP came in higher than all the comps as adjusted with the exception of one superior sale comp.

I stand corrected. Guess I'll never make it as a review appraiser.

 

[J Grant]

I have no idea if it was AI-generated, but if it was, then AI is really impressive.

However, I doubt it - because that means AI would be able to read an appraisal, identify the deficiencies on a deep level, and then search for alternate comps the way a reviewer can to see if the appraiser cherry-picked sales or ignored good sales, among other things.

AI can be used to review paragraphs and sentences to correct grammar or rephrase verbiage for a more polished presentation, but that is not AI-generated - it is using AI as an editing tool.

 

[Carnivore]

I have to say, all of those “stips” are legitimate questions. I was taught from my time as an itty bitty appraiser to anticipate questions and answer them THE FIRST TIME in the sales comparison comments.

All of those things would cause me to think, “wha, oh! Better find comps for those!” If you can’t find comps for those, at least find sales that have those things and compare them to similar sales so you can derive an adjustment or not adjustment. Then say what you did! You did the work. Brag about it!

One thing I have learned is if you address things the first time, you get a lot more leeway then having to address them after they ask.

The question is why did the appraiser not address those issues up front? 1. He is a rookie 2. or poorly trained OR 3. he thought he could skate by because he got away with it in the past.

The need for speed and low fees s killing this profession. Until the over-supply of res appraisers declines it won't get any better. I could have spelled that out better, but you get the drift. 3.6 is a game changer. I heard through the grape vine that the AMC's our going to lower fees and demand faster turn times. Why because their is not enough work available to support their overhead. apprx half of the AMC's in NC have not renewed. thats very telling because desktop fees are so low there is not enough money to support their overhead
I even heard/read somewhere that a number of AMC's are merging ...not sure why but probably because of scale and less competition and reducing the need for the number of checker dudes

 

[Surf Cat]

The need for speed and low fees s killing this profession. Until the over-supply of res appraisers declines it won't get any better.

12 CFR Part 34 (Real Estate Lending and Appraisals): This regulation, issued by the Office of the Comptroller of the Currency, mandates appraiser independence (§ 34.45) and requires that appraisals be performed by State certified or licensed appraisers who meet specific competency standards (§ 34.46). It applies to federally regulated institutions lending on real estate.

According to the above....someone's messing up.... back in the mortgage broker days, one had to provide three appraisal samples to the lenders to prove competency. It wasn't just about licensure.

I heard through the grape vine that the AMC's our going to lower fees and demand faster turn times.

Faster turn times? They shouldn't have come up with the 3.6 then....lots of experienced, competent, appraisers here on the Forum can't even get through it on a practice run. It's going to be a cluster if they go live and all these software provider's programs freeze and crash......

 

[sputnam]

12 CFR Part 34 (Real Estate Lending and Appraisals): This regulation, issued by the Office of the Comptroller of the Currency, mandates appraiser independence (§ 34.45) and requires that appraisals be performed by State certified or licensed appraisers who meet specific competency standards (§ 34.46). It applies to federally regulated institutions lending on real estate.

According to the above....someone's messing up.... back in the mortgage broker days, one had to provide three appraisal samples to the lenders to prove competency. It wasn't just about licensure.

Like with every law or regulation... meaningless unless there is good enforcement.

 

[J Grant]

12 CFR Part 34 (Real Estate Lending and Appraisals): This regulation, issued by the Office of the Comptroller of the Currency, mandates appraiser independence (§ 34.45) and requires that appraisals be performed by State certified or licensed appraisers who meet specific competency standards (§ 34.46). It applies to federally regulated institutions lending on real estate.

According to the above....someone's messing up.... back in the mortgage broker days, one had to provide three appraisal samples to the lenders to prove competency. It wasn't just about licensure.


Faster turn times? They shouldn't have come up with the 3.6 then....lots of experienced, competent, appraisers here on the Forum can't even get through it on a practice run. It's going to be a cluster if they go live and all these software provider's programs freeze and crash......

"They". been suggesting, not mandating, but suggesting as much as they can without appearing to push - AIVRE and similar software that auto-fills the comments, provides an illustration or computer-generated "analysis" that shows "support" of trends and adjustments - with a few clicks. The appraiser signing might not have a clue about the actual market or subject ( they never saw the subject or area firsthand if a PDR person went out) . The churn and burn crowd or scrambling to fill a quota staff appraiser by using certain software can click prompts and finish a UAD 3.6 faster than they could a 2.6, because (I just checked their website ), AIVRE and the similar explosion of upstarat software was designed to auto-fill 3.6 using GSE-compliant and UAD3.6-compliant language. When the AMC turned appraisers into vendors, choosing them based on how much profitability they could return to the AMC via low fees or faster turn times, this is the outcome. pay, too fast to analyze or verify turn times, and keeping appraisers deskbound (PDR collectors /ybrids) instead of the appraiser inspecting the subject of their own appraisal, as well as talking programs that function to auto-fill a report.

Relying on autofill click for support software will further erode and devalue the skillset of appraisers and thus provide the next rationale to further shrink the role of appraisers. It seems designed for that end goal-if they simply wanted to add more data fields into an appraisal, they could have easily accomplished it by revising/expanding data fields into the existing 2.6 forms.

The best of both worlds would be competent appraisers ( who go into the field to see their own properties, ) the best of both worlds is competent appraisers who use AI or even autofill as a starting point and do their own deep dive analysis and verificaion - but that takes time, and if those appraisers do not get hired for orders because an AMC can find churn and burn for $50 less, then whato becao

 

[Zoe]

(1) Comp 2 is the only comparable with similar two-bedroom utility and reflects a lower adjusted value. Please reexamine the utility adjustments using paired sales analysis.

(2) Comp 4, the only comparable with similar external influences, supports a lower value. Please reexamine location adjustments using paired sales analysis

(3) If adjustments for utility and/or location are revised, please revisit the adjustment for the ADU feature. Ensure the adjustment is supported by paired sales and reexamine the value reconciliation, if warranted

(4) Only Comp 3 adjusts above the opinion of value; the remaining comparables adjust 5%–12% below. Comp 3 is larger, superior in location and parking, located on a larger site, and in a different town. Although it appears to bracket the subject’s ADU feature, please reconsider its reconciliation weighting given its overall inferior comparability

(5) Comps 5 and 6 are listings that adjust well below the opinion of value, which is inconsistent with the Principle of Substitution. Please revisit the grid and reexamine the reconciliation or provide supporting commentary

Bedroom count I can understand.

Comp 4 on external influences I don't understand.

I don't know utility or location references other than 2 bedroom

only comp 3 adjusts above opinion of value. the remaining comparbles adjusted 5% to 12% I don't understand. Why did they adjust below?

listing are relevant but still don't know if truly competitive or inferior for some reason.

 

[Zoe]

I am not clear on location really and how it is relative. I understand it is relative. I am not sure how. If location is huge, a 2 bedroom could be worth more than a 3 bedroom unit.

I am not geo competent personally on subject.

 

[Non Sequitur]

Can't say it was an a.i. review but I wouldn't doubt a.i. was involved in one way or another.

Beyond the review, the OP is stuck with one of the complex reports indie appraisers are left with after AMC staff and national staff firms suck up all of the gravy assignments. Independent appraisers are increasingly left with the gorillas that should be sent to portfolio lenders. The GSE system is allowing AMCs and national staff firms to suck up the gravy while claiming tech and systems are the reason their turn times and lack of revisions are low. So here we are, an indie appraiser stuck with an assignment no AMC staff or national staff firm will handle and is now suffering the consequences. Hope the OP charged enough and learned a lesson.