AI Appraisal?

[Nancy Heiss]

An opportunity arose for me to see a prior appraisal on a home I will inspect today. The prior appraisal has so much detail my head was swimming. There was paragraph after paragraph of how he determined his adjustments, including this:
The fireplace adjustment was developed at $8,000. To arrive at this adjustment, 17 different adjustment methods were utilized and many of those were calculated on five sets of data. That resulted in a total of 51 different analyses being performed. Of those analyses, a total of 20 were given weight and consideration. The results (based on those 20 methods) provide an adjustment range from $2,300 to $49,500. Depreciated cost, grouped data
(median and average), adjusted paired sales (median and average), peer adjustments (median and average), 6 different types of simple regression, and sensitivity analysis were the adjustment methods used to develop this adjustment.

I don't know about you, but in Southern California, I have not found a fireplace adjustment is warranted.

He also provided a room-by-room breakdown which included a minimum of 15 measurement, addition, subtraction, multiplication. The rooms, according to the sketch are mostly square or rectangle.

He included 7 comps, only 1 is in the subject's market, which is a custom home area. Comps are standard tract homes.

The more I look at it, out of curiosity once I saw his adjustment 'support', I think this must be an AI product. Has anyone seen this and do lenders even bother to look at it?

 

[Vermonter]

AI enhanced probably. Meaning they just add extra layers of AI slop to the report.

As I've stated before, the tech is already at the point it could produce a credible report on certain properties, so it could be some kind of hybrid. No way to really know tho without asking the original appraiser

 

[Surf Cat]

Has anyone seen this and do lenders even bother to look at it?

It sounds as if the previous appraiser used one of the appraisal adjustment software packages and threw everything, including the kitchen sink in the report without analyzing anything.

For instance;

Synapse for Appraisers is an adjustment support tool designed to automate and enhance the analysis of property adjustments in residential real estate appraisals. It processes data you provide—such as MLS listings, public records, and cost data—using multiple mathematical methods to generate defensible adjustment results.

• Multiple Analysis Methods: Synapse runs up to 12 different adjustment methods, including paired sales, grouped data, sensitivity analysis, depreciated cost, and six types of regression. You control how each method is applied, including defining what constitutes a "similar" property and setting parameters for features like lot size or square footage.

The appraiser of your report skipped this part……

• Final Decision: Synapse does not dictate the adjustment—it provides data and analysis. You use your market knowledge to reconcile results, choose the best adjustment, and export documentation directly into your report.

 

[J Grant]

An opportunity arose for me to see a prior appraisal on a home I will inspect today. The prior appraisal has so much detail my head was swimming. There was paragraph after paragraph of how he determined his adjustments, including this:
The fireplace adjustment was developed at $8,000. To arrive at this adjustment, 17 different adjustment methods were utilized and many of those were calculated on five sets of data. That resulted in a total of 51 different analyses being performed. Of those analyses, a total of 20 were given weight and consideration. The results (based on those 20 methods) provide an adjustment range from $2,300 to $49,500. Depreciated cost, grouped data
(median and average), adjusted paired sales (median and average), peer adjustments (median and average), 6 different types of simple regression, and sensitivity analysis were the adjustment methods used to develop this adjustment.

I don't know about you, but in Southern California, I have not found a fireplace adjustment is warranted.

He also provided a room-by-room breakdown which included a minimum of 15 measurement, addition, subtraction, multiplication. The rooms, according to the sketch are mostly square or rectangle.

He included 7 comps, only 1 is in the subject's market, which is a custom home area. Comps are standard tract homes.

The more I look at it, out of curiosity once I saw his adjustment 'support', I think this must be an AI product. Has anyone seen this and do lenders even bother to look at it?

I agree with Surf Cat - sounds like this appraiser used one of the magic software programs, Synapse or True Tracts, etc., which the GSE's allude to for "support" . The GSE's need to see where it is leading-


While these programs can be useful, in the wrong hands, they are a data dump that can produce misleading results. The problem is that the results look impressive with loads of statistics, data, and charts. Either that or the appraiser is a nerd.

However it was done, the comps stink- ( the fireplace adjustment is the least of it ).

AI, by itself, can not produce an appraisal. With regard to your question, is this an AI product?

 

[chad hampton]

This is what is coming when they take knowledge and experience out of the profession. Pages and pages of pure make-believe slop.

 

[Trihard]

Paste all that data slop into Chat GPT and it will crap out that sort of language. Check to see when the appraiser got licensed. This sounds like a PAREA noob to me.

 

[Mark Sargent]

An opportunity arose for me to see a prior appraisal on a home I will inspect today. The prior appraisal has so much detail my head was swimming. There was paragraph after paragraph of how he determined his adjustments, including this:
The fireplace adjustment was developed at $8,000. To arrive at this adjustment, 17 different adjustment methods were utilized and many of those were calculated on five sets of data. That resulted in a total of 51 different analyses being performed. Of those analyses, a total of 20 were given weight and consideration. The results (based on those 20 methods) provide an adjustment range from $2,300 to $49,500. Depreciated cost, grouped data
(median and average), adjusted paired sales (median and average), peer adjustments (median and average), 6 different types of simple regression, and sensitivity analysis were the adjustment methods used to develop this adjustment.

I don't know about you, but in Southern California, I have not found a fireplace adjustment is warranted.

He also provided a room-by-room breakdown which included a minimum of 15 measurement, addition, subtraction, multiplication. The rooms, according to the sketch are mostly square or rectangle.

He included 7 comps, only 1 is in the subject's market, which is a custom home area. Comps are standard tract homes.

The more I look at it, out of curiosity once I saw his adjustment 'support', I think this must be an AI product. Has anyone seen this and do lenders even bother to look at it?

Sounds like AI or the new Spark or whatever the other program sis

 

[Nancy Heiss]

Paste all that data slop into Chat GPT and it will crap out that sort of language. Check to see when the appraiser got licensed. This sounds like a PAREA noob to me.

2016 Trainee, 2018 Licensed, 2019 Certified.

 

[shrubberyvaluation]

An opportunity arose for me to see a prior appraisal on a home I will inspect today. The prior appraisal has so much detail my head was swimming. There was paragraph after paragraph of how he determined his adjustments, including this:
The fireplace adjustment was developed at $8,000. To arrive at this adjustment, 17 different adjustment methods were utilized and many of those were calculated on five sets of data. That resulted in a total of 51 different analyses being performed. Of those analyses, a total of 20 were given weight and consideration. The results (based on those 20 methods) provide an adjustment range from $2,300 to $49,500. Depreciated cost, grouped data
(median and average), adjusted paired sales (median and average), peer adjustments (median and average), 6 different types of simple regression, and sensitivity analysis were the adjustment methods used to develop this adjustment.

I don't know about you, but in Southern California, I have not found a fireplace adjustment is warranted.

He also provided a room-by-room breakdown which included a minimum of 15 measurement, addition, subtraction, multiplication. The rooms, according to the sketch are mostly square or rectangle.

He included 7 comps, only 1 is in the subject's market, which is a custom home area. Comps are standard tract homes.

The more I look at it, out of curiosity once I saw his adjustment 'support', I think this must be an AI product. Has anyone seen this and do lenders even bother to look at it?

Its the dazzle the reader with a bunch of BS.

 

[Trihard]

2016 Trainee, 2018 Licensed, 2019 Certified.

Adjustment range from $2,300 to $49,500 from an experienced appraiser is wild. But to be fair they are using the tools the GSE's want the appraiser to use.