AI in Commercial Appraisals

[RichMahagony]

I'm sure there is already a thread for this, if so, forgive me and please point me to it. However, to date, what can commercial appraisers benefit from with regard to AI? Is there anything I can/should use it for?

 

[WestMichiganCG]

You could use it to clean up some of your language in your market analysis.

 

[Elliott]

Gemini hasn't learned to be woke enough yet. I'd think it would get written up by Fannie with three demerits and put on a watch list. Only human appraisers know how to skirt DEI traps.

Question: I'm thinking of buying a house in West Garfield Park, Chicago, Illinois. What are the advantages and disadvantages of raising a family and living in West Garfield Park for property values, schools, parks, and other residential amenities?​

Advantages of Raising a Family in West Garfield Park:​

• Affordability: Housing prices in West Garfield Park are significantly lower than the Chicago average, making it an attractive option for families on a budget.
• Community: The neighborhood boasts a strong sense of community, with residents often looking out for each other and organizing events.
• Culture and History: West Garfield Park has a rich cultural heritage with landmarks like the Garfield Park Conservatory and significant historical sites like the National Museum of Mexican Art.
• Improvement Efforts: Recent revitalization efforts are underway, leading to increased investment in the area and potential for future growth.

Disadvantages of Raising a Family in West Garfield Park:​

• Crime Rates: West Garfield Park has historically experienced higher crime rates compared to other areas of Chicago. While statistics show some improvement, it's important to be aware of the current situation and take precautions.
• School System: Public schools in the area generally struggle with lower performance compared to the city average. This may necessitate considering alternative educational options for your children.
• Limited Amenities: Compared to more affluent neighborhoods, options for entertainment, dining, and shopping might be limited in West Garfield Park.
• Property Value: While currently affordable, property values in West Garfield Park haven't seen significant growth compared to other areas.

Additional Considerations:​

• Specific Location: West Garfield Park is a large neighborhood with varying conditions. Researching specific blocks and their safety concerns is crucial.
• Personal Priorities: Weigh the advantages and disadvantages based on your priorities as a family. If affordability is critical, West Garfield Park might offer an attractive option. However, if you prioritize access to top-tier schools and extensive amenities, it might not be the best fit.

It's crucial to conduct your own research beyond this summary, which should include:

• Consulting local crime statistics and school reports.
• Reaching out to real estate agents specializing in the area.
• Connecting with current residents to gain their perspectives.

By conducting in-depth research and considering your family's specific needs and priorities, you can make an informed decision about whether West Garfield Park is the right place to raise your family."
........................
Short answer, I wouldn't allow my robots to grow up there.

 

[alebrewer]

How are they going to strip AI of it's inherent bias?....

 

[Funky Obsolescence]

I use ChatGPT like a personal assistant. I often have it review what I write. I've used to help me with cover letters, resumes, emails to clients, neighborhood write ups etc. You can ask it to critique your text or even simplify something that is just getting too wordy. A cool trick is to use it to review excel files. Take an excel file, save it as a .csv file. Open .csv in notepad and paste into the ChatGPT chat. I recently copied and pasted a sales grid and asked ChatGPT to compare and contrast each sale with the subject. It actually did a really good job. I DO NOT copy and paste ChatGPT's outputs into emails or reports. I DO use some of the text and language that aids in my analysis or helps get my points across better in an email. I DO check the validity of everything it spits out. The benefit of using it with a .csv file is that you control the input. Remember, just like with a real assistant, you also need to check ChatGPT's work. It will make things up! Until recently Chat GPT was stuck in 2021. It could not access information beyond that year. But I recently read that after September 2023 that ChatGPT can now browse the web to give you current information that's more recent than 2021. That is just something I read. I haven't confirmed if this is true or not. I would love to hear how else some of you are using AI. It seems to me that if I can input excel data into Chat GPT there must be loads of other uses that I haven't thought of yet. Additionally, I hear that some programs and software allow for Chat GPT plugins.

 

[SMALLS347]

Yes, to everything you wrote! It's really helpful to use as a starting when writing area analysis verbiage, it gives me a baseline to get me brainstorming. I recently upgraded to ChatGPT 4.0 and added an extension that has templates, I highly recommend exploring the extensions available too. I am utilizing a writing template to put together a resource booklet for future clients. Tools like ChatGPT aren't "cheating", I am still doing the same work and it's still "me" doing the work in the end but in a much more clear and concise way. I had about 10 pdfs of 20ish pages about zoning regulations and redevelopment plans for an area. Rather than spending 1-2 hours going through the docs to figure out a summary, I took all the pdfs and uploaded to ChatGPT to summarize. ChatGPT improves work quality and gives me back more time to enjoy my life not reading zoning documents. I listened to a really great podcast on real estate and utilizing ChatGPT, message me if you are into podcasts and I will send you the link to the episode.

 

[Tom D]

Gemini hasn't learned to be woke enough yet. I'd think it would get written up by Fannie with three demerits and put on a watch list. Only human appraisers know how to skirt DEI traps.

Question: I'm thinking of buying a house in West Garfield Park, Chicago, Illinois. What are the advantages and disadvantages of raising a family and living in West Garfield Park for property values, schools, parks, and other residential amenities?​

Advantages of Raising a Family in West Garfield Park:​

• Affordability: Housing prices in West Garfield Park are significantly lower than the Chicago average, making it an attractive option for families on a budget.
• Community: The neighborhood boasts a strong sense of community, with residents often looking out for each other and organizing events.
• Culture and History: West Garfield Park has a rich cultural heritage with landmarks like the Garfield Park Conservatory and significant historical sites like the National Museum of Mexican Art.
• Improvement Efforts: Recent revitalization efforts are underway, leading to increased investment in the area and potential for future growth.

Disadvantages of Raising a Family in West Garfield Park:​

• Crime Rates: West Garfield Park has historically experienced higher crime rates compared to other areas of Chicago. While statistics show some improvement, it's important to be aware of the current situation and take precautions.
• School System: Public schools in the area generally struggle with lower performance compared to the city average. This may necessitate considering alternative educational options for your children.
• Limited Amenities: Compared to more affluent neighborhoods, options for entertainment, dining, and shopping might be limited in West Garfield Park.
• Property Value: While currently affordable, property values in West Garfield Park haven't seen significant growth compared to other areas.

Additional Considerations:​

• Specific Location: West Garfield Park is a large neighborhood with varying conditions. Researching specific blocks and their safety concerns is crucial.
• Personal Priorities: Weigh the advantages and disadvantages based on your priorities as a family. If affordability is critical, West Garfield Park might offer an attractive option. However, if you prioritize access to top-tier schools and extensive amenities, it might not be the best fit.

It's crucial to conduct your own research beyond this summary, which should include:

• Consulting local crime statistics and school reports.
• Reaching out to real estate agents specializing in the area.
• Connecting with current residents to gain their perspectives.

By conducting in-depth research and considering your family's specific needs and priorities, you can make an informed decision about whether West Garfield Park is the right place to raise your family."
........................
Short answer, I wouldn't allow my robots to grow up there.

is there anything here that even slightly tells you who the occupants are, or their race, or their color, age, etc. seems like a decent report, but decent reports can be convoluted into you being racist by da race hustlers..

 

[Funky Obsolescence]

I haven't used Gemini or Bard. I guess that is a good question to tag on here. What other AI assistants are people using and how? Are there any differences to these?

 

[Funky Obsolescence]

Also, I asked ChatGPT how appraisers could use it when doing commercial appraisals. This is what it told me. I still feel like I'm under utilizing this tool but am kind of stuck on how to use it as more than just a personal assistant for writing text and emails.
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Using ChatGPT for commercial real estate appraisal can be quite beneficial. Here's how you could integrate it into your workflow:

1. Market Research: ChatGPT can assist in gathering and analyzing market data. Provide it with specific criteria such as location, property type, size, and desired features. It can then scour the internet for relevant data, recent transactions, market trends, and comparable property prices. This can save you time and provide a comprehensive overview of the market.
2. Financial Modeling: ChatGPT can help in creating financial models for property valuation. You can provide it with relevant financial data such as rental income, operating expenses, vacancy rates, and capitalization rates, and it can assist in generating cash flow projections, net present value calculations, and internal rate of return analysis.
3. Risk Assessment: ChatGPT can aid in identifying and assessing various risk factors associated with commercial properties. It can analyze factors such as market volatility, tenant creditworthiness, lease terms, regulatory compliance, environmental issues, and macroeconomic trends to help you evaluate the risk profile of a property.
4. Due Diligence: ChatGPT can assist in conducting due diligence by reviewing legal documents, property records, zoning regulations, environmental reports, and other relevant documents. It can help identify potential issues or discrepancies that may affect the property's value or viability.
5. Report Writing: ChatGPT can help in drafting appraisal reports by summarizing key findings, analyzing data, and providing insightful commentary. You can provide it with an outline or key points, and it can generate coherent and well-structured reports tailored to your specific requirements.
6. Client Communication: ChatGPT can be used to interact with clients, answer their queries, and provide them with updates on the appraisal process. It can assist in explaining complex concepts, addressing concerns, and providing recommendations based on the appraisal findings.
7. Continuous Learning: ChatGPT can serve as a knowledge resource for staying updated on industry trends, best practices, regulatory changes, and emerging technologies related to commercial real estate appraisal. You can ask it questions, seek clarification on specific topics, and leverage its vast knowledge base to enhance your expertise in the field.

By integrating ChatGPT into your commercial real estate appraisal workflow, you can streamline various tasks, improve efficiency, and enhance the quality of your appraisal reports. However, it's essential to remember that ChatGPT is a tool to assist human decision-making rather than replace it entirely. Always exercise professional judgment and verify the accuracy of the information provided by ChatGPT before making any critical decisions.

 

[Terrel L. Shields]

...and a student got charged with using Grammarly to help write a report...go figure.