Is AI too honest for appraisal work?

[Fernando]

Just this morning I inspected a multi-family in the middle of a Crips neighborhood. 50,000 people live in that zip and most of them are good people. They need appraisers to act professionally when providing services related to their properties.

I let other appraisers go to "Crips" neighborhood.

 

[Alsie35]

It is THE MARKET and THE MARKET ALONE that takes into account things like crime rates, cost of living, unmentionable demographics, etc etc.

This is called the law of reality.

For example, Beverly Hills will have different median property values per property and per square foot, than will East LA. Delving into the sociological factors for that difference is not the appraiser's job.

Connecting all those other dots is what the BUYERS do on their own when they choose where they're going to go to buy a home.

Those criteria are not relevant to our valuation of the property as such. What is relevant is that we correctly reflect the MARKET VALUE of a particular home.

Nothing more. (That is, until the next woke Marxist administration comes in and outlaws using market value as an appraisal valuation criteria.)

You laugh, but that is exactly what is coming if and when that comes to pass politically. I will be long retired from this racket before then, so I could give a rat's ***.

 

[djd09]

yeah one time in 1998...deep within the rat infested streets of east cleveland...this blood gang banger wanted to fight me because i was taking pictures...welcome to the neighborhood

 

[J Grant]

It is THE MARKET and THE MARKET ALONE that takes into account things like crime rates, cost of living, unmentionable demographics, etc etc.

This is called the law of reality.

For example, Beverly Hills will have different median property values per property and per square foot, than will East LA. Delving into the sociological factors for that difference is not the appraiser's job.

Connecting all those other dots is what the BUYERS do on their own when they choose where they're going to go to buy a home.

Those criteria are not relevant to our valuation of the property as such. What is relevant is that we correctly reflect the MARKET VALUE of a particular home.

Nothing more. (That is, until the next woke Marxist administration comes in and outlaws using market value as an appraisal valuation criteria.)

You laugh, but that is exactly what is coming if and when that comes to pass politically. I will be long retired from this racket before then, so I could give a rat's ***.

Well if we use comps from similar affected areas (whether positive or negative), the prices reflect it. We should know by now why mentioning crime rate stats or school districts is problematic for the appraisers' clients. Nobody is forcing anybody to do lender work.

A well-informed or well-advised buyer is the MV definition. The buyers today have a wealth of stats and online information to find out all they want to on their end, crime rates, school districts,s income, demographics. Lenders have access to the same information. Neither group needs us to provide it.

 

[George Hatch]

Parts is parts. I don't get emotionally involved with the properties I appraise. I don't like properties and I don't hate properties. Or neighborhoods.

 

[J Grant]

I might personally like or dislike certain properties or neighborhoods but I put that aside when I do the appraisal part.

 

[djd09]

USPAP requires appraisers to define relevant market characteristics...not divulging this information would be the definition of misleading

 

[George Hatch]

Fair housing and fair lending laws pertain when it comes to residential properties, and in the event of any real or imagined conflict between the law vs our professional ethics the JURISDICTIONAL EXCEPTION RULE applies in order to defer to the law. Appraisers are required to adhere to the law.

If you think the law is immoral then there's an app for changing the law, but unless/until those requirements do get changed they supercede your biases.

As for our professional responsibilities, I think this one goes out to you:

 

[J Grant]

Imo, some appraisers can have an issue appraising out of their comfort zone ( on either end of the scale - very wealthy or very poor /problem areas or properties. ) We have to put aside our own norms and think like the folks buying in those areas.

 

[djd09]

fair housing laws do not state that appraisers cannot talk about crimes...prove me wrong