20 Minute AI Appraisals Are Coming

[J Grant]

I don't think about the rich. They aren't the people with whom I compete for resources. They don't make me happy, they don't make me unhappy.

As for the relentless march of technology, it isn't just the rich who benefit from that evolution. I also personally benefit from it. I use online banking instead of standing in the 1hr line at BofA like I did when I was 18. I use the self-checkout machines at the grocery store and Target. I use digital imagery and computer programs instead of 35mm developing and human typists. I use those tech advancements and a number of others without any regard for how many human employees they have displaced. I have to find/exploit my own opportunities in the general economy and so do they.

Even to the extent the various opinions about AI putting a lot of people out of work forever are correct, so what? Nobody is voluntarily going to stop taking advantage of their alternatives so that evolution is going to happen regardless of what we do.

One thing I know for sure, which is that it is not the role of government to function as a jobs program. Govt is morally obliged to operate with a reasonable amount of efficiency, and that will include the use of technology to leverage the human productivity. The money govt spends is NOT THEIR MONEY. It's our money, and govt has no right to recklessly squander it, receiving nothing in return.

Your list of benefits is paltry when we compare what we lost from each one.

It was rare to wait in line for an hour at a teller. So now we can bank online - and get our accounts or credit cards hacked. I bet it has happened to nearly everyone at some point. (twice for myself)

I don't use auto-checkout at stores - I do not want to be unpaid help bagging my own groceries at the expense of someone's job. We are not paying lower prices because of it. Yes it is convenient to use digital but now the time pressure to deliver a report negates the convenience ( 48 hours the norm now in res lending vs a week to 10 days when we developed film)

The main lions share of benefits and $ goes to the top, when "efficeincites" are introduced - that is why these tech guys are not just milliniare,s they are billionaires many times over - and we as workers or professionals make less and less ( typically) every time they introduce the next big convenience saving more efficient thing - they are pushing AI hard because it will give them even more power, control and $ - while we get less. What cost convenience or efficiency when the price is loss of jobs and freedom and self autonomy -

 

[George Hatch]

All I'm saying is that it isn't just the rich who benefit from the inexorable march of technology.

Try taking that iPhone away from the 20-something and see what they think of that.

 

[glenn walker]

That's right. What makes it worrisome is that the powers that be ould decide that an AI valuation is good enough. The rules can be changed so that appraisals are no longer required. USPAP could be amended or abolished.

If the purchase contract price with 95% coming in on that price from apprasers is good enough for loan purposes then only 5% need looked at. Therefore outside that 5% no appraisals required and AVM and assisted with AI platform's can replace GSEs type appraisals.

The future appears to be Non Lender and a smaller commercial appraiser platform. may end up with commercial appraisers having thir appraising as just a part of another business or a part time job.

 

[George Hatch]

If the purchase contract price with 95% coming in on that price from apprasers is good enough for loan purposes then only 5% need looked at. Therefore outside that 5% no appraisals required and AVM and assisted with AI platform's can replace GSEs type appraisals.

The future appears to be Non Lender and a smaller commercial appraiser platform. may end up with commercial appraisers having thir appraising as just a part of another business or a part time job.

Sooner or later that's probably inevitable.

 

[glenn walker]

All I'm saying is that it isn't just the rich who benefit from the inexorable march of technology.

Try taking that iPhone away from the 20-something and see what they think of that.

Funny the ones who love Western Europe so much don't realize they were the ones who introduced self bagging at grocery stores over 30 years ago when I first went to Berlin. In Germany they have no idea how we lived. She needs to get out of the Hoa in the Villages and travel a little

 

[RustyTapeMeasure]

Interesting blog, worth the time to read.

https://appraisalhouseusa.com/20-minute-AI-appraisals-are-coming

Link to the company mentioned, minimum $1,500 a month to set up and run. I'm sure they are the first of many, and word on the street is at least one AMC runs its staff side with similar software.

https://www.vervus.agency/

article writer thinks they might make $250 for 30-45 minutes work from desk and or $150 to inspect the property ? LMAO..... Been a race to the bottom for quite some time but extreme escalation in speed now - terminal velocity or should it be terminal Value'ocity

 

[Non Sequitur]

article writer thinks they might make $250 for 30-45 minutes work from desk and or $150 to inspect the property ? LMAO..... Been a race to the bottom for quite some time but extreme escalation in speed now - terminal velocity or should it be terminal Value'ocity

I didn't get that from the article, but I agree if this is the future fees will tank even lower than they are now.

 

[cpursley]

All I'm saying is that it isn't just the rich who benefit from the inexorable march of technology.

If anything, technology levels the playing field - literally Archimedes's lever.

 

[George Hatch]

I have thought for many years that we spend most of our time/effort researching and qualifying and inputting our data into our reports and comparatively little time actually analyzing it and making comparisons. Maybe 90/10. Or 95/5.

How many appraisers have used DataMaster or the like to reduce the amount of time/effort they spend on just wrangling the data?

 

[Ricky LaFleur]

I didn't make it through all 19 pages of comments, but there's a lot of doom/gloom from what I saw. If you were an expert analyst and reporter with the primary task of solving complex problems, those skills are incredibly desirable and lacking in the marketplace. I can't count the number of businesses I've talked to who can't find decent help who are 1) reliable and 2) competent. Dust those skills off and find the supply/demand imbalance in your area. If you slow down on appraisal, there are other (possibly better) options out there. I've been eying about 5-6 different areas that I think would be fun to jump into, if my ship starts to sink.