3.6 Crunch Time

[Surf Cat]

All they need is the data and it can be targeted to very few sales or refi's.

Exactly.....why should I struggle for 8 hours trying to complete a 3.6 the old school way, when one of these AI report providers can do it in under an hour? All I'm concerned about is the value.

From what I've seen with these AI 3.6 report providers, "you can" dial in the neighborhood boundaries, the subject parameters (GLA, bed/bath count, construction, etc) and choose the appropriate comps. Let AI fill in all the other gibberish.....after all....these AI report providers have been "certified" and are accepted by the GSEs.

 

[Airstream]

Exactly.....why should I struggle for 8 hours trying to complete a 3.6 the old school way, when one of these AI report providers can do it in under an hour? All I'm concerned about is the value.

From what I've seen with these AI 3.6 report providers, "you can" dial in the neighborhood boundaries, the subject parameters (GLA, bed/bath count, construction, etc) and choose the appropriate comps. Let AI fill in all the other gibberish.....after all....these AI report providers have been "certified" and are accepted by the GSEs.

I wonder how they would do on rural properties?

 

[glenn walker]

I wonder how they would do on rural properties?

They won't in my opinion rural will be fine with lenders getting full appraisals on everything but maybe rate and term refinances. Rural appraisers are the winners unless others move in to take their work from outlying areas.

 

[Vermonter]

Rural appraisers are the winners unless others move in to take their work from outlying areas.

In town appraisers rarely charge enough for rural work to make it worthwhile. They try it for a bit when things are slow but because they're desperate they don't charge enough and lose their shirt in mileage and hourly rate.

 

[Airstream]

In town appraisers rarely charge enough for rural work to make it worthwhile. They try it for a bit when things are slow but because they're desperate they don't charge enough and lose their shirt in mileage and hourly rate.

I have been a rural appraiser for my entire career. I did some urban and suburban work, and marvel out how quickly I can do them. I did one last week I didn't have to make any adjustments to 3 of the sales. And I have plenty of comparables to choose from. The only reason I did the 4th comp was to show that outside the development the value was credible. And then I only made 2 adjustments. I didn't even have trouble doing a 1007 with that report.

Then I get asked to do an appraisal on a 3.9 million dollar sale that includes 620' of sandy shoreline on Lake Michigan. I've done a number of ones like that so nothing unusual for me. But it is quite the contrast. That will be a couple thousand dollars to do. Thankfully that is a private appraisal and not a 3.6 appraisal.

 

[Airstream]

Rural appraisers are the winners unless others move in to take their work from outlying areas.

You would think appraisers would think that way, but living in rural communities comes with its challenges and inconvenient traveling. People like their amenities.

 

[Fernando]

Fixed it for you

We're an insurance policy, nothing more. Someone to blame if things go south. As the tech improves, the benefit of a human based appraisal will switch to a liability compared to the automated model. It will be cheaper, more accurate and equally insurable.

Just as important being licensed, clients/lenders want proof we have E&O insurance. If not enough, you don't get the assignment.

 

[Surf Cat]

I wonder how they would do on rural properties?

Per AI:

Heavy AI-powered report-filling tools like Aivre, ValueMate, and Automax cannot reliably complete rural real estate appraisals on their own. While these platforms accelerate standard residential workflows by auto-filling data from public records, MLS, and photos, rural properties feature unique traits—such as large acreage, specialized agricultural zoning, and scarce comparable sales—that require hands-on human analysis and localized market judgment.

Sounds like you Rural guys and gals are in the driver's seat fee wise.

 

[HVNY]

I've been telling my clients that as soon as I can do a UAD 3.6 without hours of troubleshooting that I'll jump in. That doesn't seem to be happening yet.

 

[Vermonter]

I have been a rural appraiser for my entire career.

I trained and started out urban/suburban and my clients steered me to rural work 25 years ago. Never looked back.

Ran into an appraiser I trained with at USPAP class back probably 10 years ago. He won't take anything outside of the most populated county and couldn't understand how I made money doing rural work. Said he couldn't make it charging $3-400. I said "you're right, I charge more."

He just sat there blinking at me like I was speaking a foreign language.