Adjustment Software

[Tom D]

I have a simple mind, so i ask this simple question. Hey fannie, we technically work for you, pretending to be independent. You are a multi billion dollar company. Why the heck can't you provide the tools, that you have hidden somewhere to us for free, so we can do an approved CU safe harbor appraisal. Or even directly into cuAI for that perfect appraisal.

We can become CU approved designated. Better than a SRA designation, which i gave up as being worthless. I still predict 2 years left before the last appraiser turns out the light. My fingers are already on that light switch.

 

[Digger88]

Yep, looks like we are all going to have to purchase this new E&O insurance, I mean Adjustment Software Program on an yearly basis to keep the wolves at bay. Analyzing matched pairs in the your market over the past 30 years does not mean anything to the bean counters.

What programs do you all suggest?

Spark- Puts your subject, comps and your MC form into your report takes about 5 minutes.

Synapse- What the OP was about. I love it, and it works great if you know how to use it my clients love it too. It basically gives them the 'proof' they want augmented with your knowledge it's quick and easy too. Total cost is $80/month. Typically, these take about 10-15 minutes.

(same company)

A local client who I've worked with for years uses me sparingly. After I started using Synapse UWs started calling me asking for X or Y and mentioning don't worry, this won't affect your score. Score? One person explained my scoring had risen in the past year. I asked is that why I'm seeing more jumbo appraisal requests with high fees? Yes. Our investors want to see more 'proof' of adjustments and how they were derived. Also, these cut back on buybacks which makes my clients happy. Nice

Same thing with another client, a national home builder. Received a mass email about 6 months ago stating: Due to increased investor scrutiny you (appraisers) will be getting substantially more UW requests on your adjustment rationale. I got a few silly ones but those quickly went away too.

I'm not appraising any different just giving them what they want to see. Some people are great with spreadsheets, I am not so this works for me.

 

[Tom D]

Well, unlucky me who does little similar row homes with maybe a GLA adjustment and something else. I'll just keep slaving away doing them.
I see suburban and rural saying, no mas no mas. Stop the insanity.
Somewhere in fannie land, what is the purpose of all those little details. The government will now have a detailed report on your lifestyle compared to what you are reporting as income. Makes it easier to raid the house with that ansi sketch. Digital money supply and then it's animal farm living.

The adjustment software needed is how to use your talent for something different & better now.

 

[Tim Hicks (Texas)]

I had an assignment this week in a small town. Twenty year old 2400 sf home with a garage conversion on a 14000 sf lot. My comparable sale choices were two houses on city lots under 1600 sf, one much older house on a city lot under 1600 sf, a 2400 sf two year old house on an acre within a mile and two new homes on over an acre within five miles. Oh, and one 50+ year old home on 1.6 acres within five miles. So, nothing the same size or same age on a city lot, everything the same size on acreage and much newer and higher quality, the one sale without a garage was the much older house under 1600 sf on a city lot. Every single sale available needed large adjustments, but everything was bracketed. Of course, they don't like my value for their refinance.

Adjustment support software does not really help when you utilize it in small towns that have maybe 10 sales a year. You basically have to rely on your experience and bracketing.

 

[Non Sequitur]

As one of the select few who makes adjustments for kitchen disposals, I applaud steps to discipline those who ignore those adjustments. It isn’t merely the lack of a disposal that warrants an adjustment, the market reaction to horsepower differences in disposals can be significant. As an industry we should spend more time observing the kitchen remodeling cable shows, the data is there for those who believe in due diligence.

We're not far from that. Appraisers can scoff all they want, but if AI-photo recognition picks up that one of your comps has higher ceilings, energy rated appliances, a tankless water heater, and your subject doesn't, don't think you won't have to answer questions down the line. Never mind about high speed internet access, and elevations, etc.

I spent a lot of time visiting vendors at the AMC Expo (aka Valuation Expo) and all of the software vendors are baking in their version of scan to sketch, CubiCasa, etc. to meet the increased needs of UAD 3.6 dataset. I know several appraisers IRL and in this thread who say they will never use CubiCasa, etc. but if it can scan the subject and autofill fields like front door elevation, ceiling height in each room, identify appliances and their HERS ratings, etc. why not? You will be banging your head against UAD 3.6 if you want to manually input the ridiculous amount of data AND banging your head when your photos are analyzed by your client's or Fannie's AI-photo software and it doesn't agree with you.

I don't like any of this, but I've seen a few versions of software in action. Whether or not they hit the 2026 drop dead date is a guess, but it is coming and the residential GSE appraisal world will change dramatically.

 

[Surf Cat]

Adjustment support software does not really help when you utilize it in small towns that have maybe 10 sales a year. You basically have to rely on your experience and bracketing.

These days, with everyone sitting on their 3% loans and little market activity, adjustment software doesn't work that well in Suburbia either. The main reason being people don't buy homes that way. Yet, appraisers due to this trend of having to prove each and every adjustment, now have to make sense of this imperfect data.

It's funny..... Realtors price their listings by the square foot. They don't really discern different home styles or year of construction. Price per square foot, similar bed and bath count, in the area where the wife wants their Little Darlings to go to school. A little negotiation back and forth, possibly a concession for repairs....done.

Now the appraiser has to come behind this simplicity and provide rocket ship data of what the market was thinking.

My point, is that I agree with Tim's assertion that it comes down to bracketing, experience in the market area and pretty much a simple sensitivity analysis....

You've got to think that the powers that be are sitting in their offices going;

"let's only give them half fee, that'll make them go away! Oh boy.... they're still coming back. I know! Let's charge them to send in their appraisal reports....Oh my God! These guys are gluttons for punishment! Wait, this is it! Let's have them provide us statistical analysis of an imperfect Market!! Those dumb appraisers will surely throw in the towel then....."

 

[J Grant]

We're not far from that. Appraisers can scoff all they want, but if AI-photo recognition picks up that one of your comps has higher ceilings, energy rated appliances, a tankless water heater, and your subject doesn't, don't think you won't have to answer questions down the line. Never mind about high speed internet access, and elevations, etc.

I spent a lot of time visiting vendors at the AMC Expo (aka Valuation Expo) and all of the software vendors are baking in their version of scan to sketch, CubiCasa, etc. to meet the increased needs of UAD 3.6 dataset. I know several appraisers IRL and in this thread who say they will never use CubiCasa, etc. but if it can scan the subject and autofill fields like front door elevation, ceiling height in each room, identify appliances and their HERS ratings, etc. why not? You will be banging your head against UAD 3.6 if you want to manually input the ridiculous amount of data AND banging your head when your photos are analyzed by your client's or Fannie's AI-photo software and it doesn't agree with you.

I don't like any of this, but I've seen a few versions of software in action. Whether or not they hit the 2026 drop dead date is a guess, but it is coming and the residential GSE appraisal world will change dramatically.

CubiCasa does not measure per Ansi, so I do not know if GSE bound appraisals will allow the appraiser to use it ( even though they let the data collector use it)

That might change in the future though -

 

[Surf Cat]

CubiCasa does not measure per Ansi, so I do not know if GSE bound appraisals will allow the appraiser to use it ( even though they let the data collector use it)

That might change in the future though -

All it will take is one board meeting.....ANSI out....Cubi Casa in.

 

[J Grant]

All it will take is one board meeting.....ANSI out....Cubi Casa in.

If that happens, then we will use Cubi Casa.

 

[Non Sequitur]

All it will take is one board meeting.....ANSI out....Cubi Casa in.

It's not all about ANSI, the capabilities are beyond that.