20 Minute AI Appraisals Are Coming

[Non Sequitur]

I've seen too many VC funded appraisal tech funded companies get their butts handed to them. This industry is just not large enough to justify anything other than bootstrapped self-funded. Unless their plan is to harvest our data and resell it (the most common play) and/or try to replace appraisers.

Maybe, maybe not. But I will never outright dismiss anyone who is spending millions in my space on solutions when I only spend hundreds to educate myself. Either way, while I'm doing my best to keep up with artificial intelligence, I'm smart enough to know that people who are smarter and can afford to hire people who are smarter will develop solutions that I just can't. So I pay attention to what they are doing.

 

[cpursley]

Maybe, maybe not. But I will never outright dismiss anyone who is spending millions in my space on solutions when I only spend hundreds to educate myself. Either way, while I'm doing my best to keep up with artificial intelligence, I'm smart enough to know that people who are smarter and can afford to hire people who are smarter will develop solutions that I just can't. So I pay attention to what they are doing.

Raising millions is more of a "smooth talker" and "who you know / who's in your network" skillset than a technical one. Technology in the appraisal space is not like doing rocket science or core research. Any of the hard stuff like machine learning and AI is built on top of other tech solutions, no need for truly proprietary solutions. I'm just not convinced VC funding is required. If anything, it's a likely death sentence. That said, while reserved, I'm biased toward improving the tech in the space.

 

[Mark K]

Maybe a bit off of this particular tangent but in regards to the OP and 20 Min. AI appraisals...

I was at a wedding over the weekend and was talking to a young man, 35 ish, that is deeply involved in Amazon's data dept. He was an MD Radiologist with a comp. science degree and Amazon hired him for their IT dept. One of the things that Amazon does is collect a huge amount of data from its trucks. They have cameras that record everything. Everything from street views to neighborhood condition to every detail on every house they deliver packages to. He says Amazon isn't using it, YET, but they are selling it to other interested parties, including valuation services, insurance companies, etc.

At the rate they're going, it won't be a 20 min AI appraisal, it will be more like a 30 second report. It will take longer to input the property address than it will to generate a report.

 

[Non Sequitur]

Maybe a bit off of this particular tangent but in regards to the OP and 20 Min. AI appraisals...

I was at a wedding over the weekend and was talking to a young man, 35 ish, that is deeply involved in Amazon's data dept. He was an MD Radiologist with a comp. science degree and Amazon hired him for their IT dept. One of the things that Amazon does is collect a huge amount of data from its trucks. They have cameras that record everything. Everything from street views to neighborhood condition to every detail on every house they deliver packages to. He says Amazon isn't using it, YET, but they are selling it to other interested parties, including valuation services, insurance companies, etc.

At the rate they're going, it won't be a 20 min AI appraisal, it will be more like a 30 second report. It will take longer to input the property address than it will to generate a report.

Thanks for posting, too many appraisers don't believe things like this are happening.

 

[djd09]

good luck in doing a highest and best analysis in 30 seconds...

 

[Mark K]

good luck in doing a highest and best analysis in 30 seconds...

How many F/F reports do you think have been submitted that indicated that the current use isn't the HBU? Maybe somewhere between none and much less than 1%, making it a virtual non-issue. Even if the report says "no" on the HBU question, chances are the lender will waive it away.

 

[glenn walker]

How many F/F reports do you think have been submitted that indicated that the current use isn't the HBU? Maybe somewhere between none and much less than 1%, making it a virtual non-issue. Even if the report says "no" on the HBU question, chances are the lender will waive it away.

Not even 0.25% because a true highest and best use in residential is almost always it's existing use otherwise the market's being investors and users would have already raised it and built the higher and better use.

 

[cpursley]

This actually looks pretty neat: https://apps.apple.com/us/app/3d-snap-lidar-scanner-ruler/id6477467417?mt=8

 

[George Hatch]

good luck in doing a highest and best analysis in 30 seconds...

If the parcel is zoned for SFRs and is built out with SFRs then HBU is a gimme. If they have land sales in that zip for SFR parcels and their model shows prices for the existing homes that are higher than the land value then "as is" will be the conclusion whether it's an AI doing that comparison or an appraiser. If the parcel is zoned for multi-family then they'll be looking for land sales with that potential.

That latter example is more than most SFR appraisers are doing. If I can show you how to do it in a couple hours (or less) then an AI can learn to do the same. Once learned they won't be forgetting how to do it.

Their problem will be finding the land sales (or "sold for land value") to begin with. Not analyzing that data.

 

[glenn walker]

If the parcel is zoned for SFRs and is built out with SFRs then HBU is a gimme. If they have land sales in that zip for SFR parcels and their model shows prices for the existing homes that are higher than the land value then "as is" will be the conclusion whether it's an AI doing that comparison or an appraiser. If the parcel is zoned for multi-family then they'll be looking for land sales with that potential.

That latter example is more than most SFR appraisers are doing. If I can show you how to do it in a couple hours (or less) then an AI can learn to do the same. Once learned they won't be forgetting how to do it.

What about Price versus Value can AI learn that too ? Lol