Adjustment Software

[OSU Beavers]

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.

AI is nothing more than a bunch East Indians meta tagging photos in one second or less for the algorithm. Are those countertop marble or epoxied concrete?

 

[Digger88]

In the past year there have been a total of 214 sales in my 14 sq mi neighborhood. Low of $400K high of $2.5M. Median of 735K. 21% of the sale were over $1M. With a spread like that a macro analysis is questionable at best. But trying to isolate a market segment is almost impossible due to lack of sales similar to each other

With this software in my area at least it's pretty great. You control what criteria you want to pull for your comps that goes into it via your MLS

 

[Tim Hicks (Texas)]

Some of the flaws I see in these adjustment software programs is based on the lack of good data in a MLS. For instance, there is no way to disseminate the contributory value of workshops or guest quarters. There is no way to support the adjustment for a 1200 sf workshop compared to a 4800 sf workshop or 2400, 3600 etc. MLS data usually just says "workshop." Guest quarters can be lumped into living area in MLS listing. MLS listings may have the ADU size, but many times they do not. A 600 sf, 1200 sf, 1800 sf guest quarters all have different contributory values, but we have to dissect the MLS listing to see the size of the ADUs then dissect whether they were included in living area. Rural appraisals have so many different improvements we have to use the old appraisal science of figuring contributory value.

 

[Mike Ault]

Some of the flaws I see in these adjustment software programs is based on the lack of good data in a MLS. For instance, there is no way to disseminate the contributory value of workshops or guest quarters. There is no way to support the adjustment for a 1200 sf workshop compared to a 4800 sf workshop or 2400, 3600 etc. MLS data usually just says "workshop." Guest quarters can be lumped into living area in MLS listing. MLS listings may have the ADU size, but many times they do not. A 600 sf, 1200 sf, 1800 sf guest quarters all have different contributory values, but we have to dissect the MLS listing to see the size of the ADUs then dissect whether they were included in living area. Rural appraisals have so many different improvements we have to use the old appraisal science of figuring contributory value.

One small community in my area was "giving land away" to anybody who would agree to move there and build a home. I wonder how the GSE AVM would determine "site values" in that town, much less anything else.

 

[NC Appraising]

With this software in my area at least it's pretty great. You control what criteria you want to pull for your comps that goes into it via your MLS

I use it and I live in cookie cutter land. You really have to know what search perimeters to use and what works. If not, you will get a crazy range that doesn't make sense.

You have to make sure that you are using neighborhoods with similar price points.

Sometimes I still get crazy ranges after playing with it. Condition and quality is never reliable.

If the owner of synapse is reading this or any other software developers are reading this: please make image recognition software available. It would be nice to use image recognition software first to get rid of q2 q5 c2 c4 homes, etc. in the data set. Then we can use that data set in synapse.

Aloft software does it now, but it's not user friendly for large data sets.

I like aloft, but it's take it or leave it. Doesn't allow for appraisers to use their data or adjustments.

 

[NC Appraising]

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.

I've been researching AI and appraisals.

It is my opinion that AI will be the end of the profession.

I say within the next ten years, even the so called complex appraisals will not need an appraisal.

Property inspectors, AI, image recognition AVMs, and quantum cocomputers. We have about 10 years left. We can lie to ourselves all we want. Tech will destroy us and America.

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[Terrel L. Shields]

One small community in my area was "giving land away" to anybody who would agree to move there and build a home. I wonder how the GSE AVM would determine "site values" in that town, much less anything else.

I wonder what a lot in Miami or Lipscomb, Tx would cost? Or, even Canadian or Borger. There is actually one home for sale... no sales since 2023 however apparently.

 

[Mike Ault]

I wonder what a lot in Miami or Lipscomb, Tx would cost? Or, even Canadian or Borger. There is actually one home for sale... no sales since 2023 however apparently. View attachment 95192

Borger actually has a decent real estate market. The part that hasn't recently burned to the ground, that is. The largest wildfire in Texas history took part of it and Canadian as well. Don't know anything about Miami, even though it's handled out of the Pampa Association of Realtors, it's outside of my 60 mile self-imposed coverage radius. That whole area took a shellacking though, when shale gas & oil exploration ceased. Hundreds of drilling rigs gathered together in fields, rusting. Sad, and everybody who had decent jobs for a while supporting that activity has fallen on hard times.

 

[Terrel L. Shields]

I heard it got part of the Turkey Track Ranch - All along the Canadian.

 

[Non Sequitur]

Wrong thread, sorry.