Is AI too honest for appraisal work?

[djd09]

there can never be a big enough safe space...maybe they should move to some western country where tongue crime laws are applicable

 

[Terrel L. Shields]

We are not advocates for the neighborhood and we're not critics of the neighborhood.

But again, how do we ignore the FACTS of a community that impact the VALUE of real estate. Is it any different than agricultural land that is producing 300 bu. of corn per acre vs the value of land that produces only 100 bu. per acre?

We have a lot of people who pay far more to live in Bentonville (aka Walmartville) vs. Gravette (a rural town to the west.) Why? Because not only are the schools better funded but the parent working at the headquarters or warehouses can access their child much quicker and easier than driving 15 miles to the west to pick them up. Yes, some people do that, but they also analyze the tradeoff between housing costs vs time spent traveling. Even the childless are weighing travel times and travel expenses vs finding more affordable housing miles away.

We have a community of Seventh Day Adventists and one of the largest grade and high schools that they run. SDA are very keenly aware of the value of proximity to that school and the nearby church. Add to that a nearby McKee Baking (Little Debbie) plant employes hundreds. And guess what? The plant is privately owned by a family of SDA and the plant closes Friday afternoons and doesn't reopen until the night shift on Saturday night. Truck drivers for them must be back by 5 pm Fridays or they park their trucks and spend the night in a hotel.

But we must pretend these decisions are not factors in the value of property in those communities.

 

[George Hatch]

If you're parsing by location then you are already accounting for those variables. You don't need to explain any of them in your report beyond commenting that they all share the similar location.

Can you appraise a property in a crime-ridden grafitti-central neighborhood without directly mentioning either factor in those terms? Yes or no? Because if you can then that demonstrates that you don't actually need to tilt at the windmill. Nobody is asking you to lie or ignore reality.

 

[djd09]

the fact are indisputable...

 

[George Hatch]

Sure, but can you quantify their effect on value to the exclusion of every other factor? No. You can't. Their only use is to provide a free shot to the critics to allege you are acting corruptly.

Why don't we use any of the superlatives the brokers use in their listings? Because even to the extent they may be true, we don't need to engage in such rhetoric and commentary in order to do what we do. And because doing so would imply to (some) readers that we're acting in advocacy for one side or the other in the transaction. That's an implication that appraisers go to lengths to avoid.

"These properties are in the same neighborhood and share generally similar location attributes. If you want to know why the pricing in this neighborhood is lower than the neighborhoods to the south and east then go ask the cat lady sociologist because she has an I-backed-into-it theory and, unlike appraisers, she doesn't have to support her theory or actually look at an appraisal. " ​

 

[djd09]

you just bought that house next to anthony sowell...oh well

 

[Elliott]

AI is not "too honest"
You asked it for crime stats. Some appraisers are too stubborn or politically partisan to leave their personal sh**t out of appraising.

AI: "The ten most important characteristics for buying a house in a neighborhood include safety, school quality, location convenience, amenities access, affordability, community vibe, future growth potential, demographics alignment, physical appeal, and homeownership rates.
• Safety: Low crime rates and visible community engagement create security and peace of mind.
• School Quality: High-rated districts boost property values, resale speed, and family appeal, even without children.
• Location: Proximity to work, highways, transit, and essentials reduces commute time and daily hassles.
• Amenities: Nearby parks, grocery stores, hospitals, shops, and recreation enhance lifestyle and convenience.
• Affordability: Housing prices and cost of living must fit budget without straining finances.
• Community Vibe: Strong sense of belonging, events, and neighborhood pride foster social connections.
• Future Growth: Planned developments, zoning, and appreciation potential ensure long-term value.
• Demographics: Age, diversity, culture, and lifestyle match personal or family needs.
• Physical Appeal: Well-maintained homes, curb appeal, and aesthetics signal care and stability.
• Homeownership Rates: Higher owner-occupancy indicates stability over rentals or foreclosures."

 

[djd09]

i dont what the problem is...most discussions about crimes and such is in the general text addendum that they never read anyways

 

[George Hatch]

True. Nobody reads the text until their loan application gets denied and they get to looking for reasons why.

 

[djd09]

have i now become the enemy for telling you the truth...