Is Automatic Data Population Really Saving Time?

[NJ Valuator]

One of the big selling points with many of the UAD 3.6 software platforms seems to be data integration and automatically pulling information from MLS, public records, and other sources. It sounds great in theory, but I'm not convinced it's as big an advantage as it's being made out to be.

Automatic population is only helpful if the information being imported is correct. As appraisers, we all know that's not always the case. MLS and public-record information can be wrong, incomplete, outdated, or simply inconsistent from one source to another.

If incorrect information gets pulled into the report, you still have to catch it, research what the correct information is, and then go back and change what was imported. In some cases, it seems like it would have been quicker just to enter the verified information yourself in the first place.

I also think there can be a downside to having so much information automatically populated. When information drops right into the report, there can be a tendency to assume it's correct because it came directly from MLS or public records. But we've all seen incorrect GLA, room counts, site sizes, sales history, and other property characteristics in those sources.

Automation does not eliminate the need for verification.

Maybe I'm a little old school. I'm approaching my 30th year as an appraiser, and I've always been used to researching and verifying information myself before putting it into a report. If I've already done that work, I don't necessarily see manually entering the data as a disadvantage. In some cases, I actually find it quicker, and it gives me more control over exactly what ends up in the report.

I'm not against data integration or automation, and I understand that the profession and the technology are changing. I just don't see automatic population as the huge advantage that some of the software companies seem to be promoting it as.

 

[RCA]

I attended an AI Aivre online Demo this morning. They have (from my info) had 3 developers working on their project for 2 years. It's pretty snappy, not bad. They still haven't got the Cost Approach working - maybe just because they need to make a deal with some cost provider (expensive ....). I see problems with some of what they are doing.

But if I were to start right now and try to do exactly what they are doing, I would not be able to catch up with them, at least not this year. But I could short-circuit the process, I suppose. Now I am tempted to do it. Probably won't have anything until January.

I have advantages:

1. Many years of programming in over 12 languages and MacOS, Windows 11, and Linux.
2. A good Apple Mac Studio M2 Ultra computer system.
3. 20 years of experience (off and on) appraising in the residential and commercial markets in California.
4. Advanced Statistics and Math going back 50 years.
5. Accounting experience (which I think is always helpful).
6. Prolog & AI experience, including working with Neural Networks and related technology.

Just me against 3 programmers? But they do have a problem. Once they start delivery on their product, they are going to be hampered with support and maintaining backward compatibility - and that is why I always want to wait, wait, wait.

They have been calculating charging $1000-$3000/year. What if I charge $20/month=$240/year? I am retired. My wife is retired. For me this is mostly just spending money. And I am absolutely sure there are plenty of appraisers who are not interested in paying another $1000/year for something. ...

Yea, this could be interesting.

 

[chad hampton]

1 of the many reason I don’t like doing reviews is that reviewing work is twice as hard (for me at least) as doing it yourself. Seems that whether it’s a human filling out a form or the borg, the appraiser needs to check it. Now in the real world, I know that doesn’t happen, but I think we should all hold ourselves to a high standard.

It’s clear from some of the reports I have seen, especially over the last few years, that there are a lot of appraisers who simply hit a button and 90% of the report is filled in, comp information adjustment information, everything. And you can tell not much thought is put into it.

I’m surprised that the GSE’s and state boards haven’t issued guidance on what is out there. Maybe they don’t know or maybe they don’t care.

They’ve done a good job over the years of changing what for decades has been considered appraisal services and claiming it isn’t actually appraising. It would be nice if they came out and said what is. Just so we can have a benchmark.

To me that is the essence of appraising. Going to properties developing opinions out in the field, then coming back and actually spending some time looking at comparables one by one performing analysis and developing opinions as you work through the MLS pages and sales grid.

I don’t think that should all be eliminated just because some company is selling $100 a month service that claims to do that for you

 

[Zoe]

They are trying to automate it on all the loans they can. That dog will bite. They know taxpayer will feed the bailout.

 

[J Grant]

There is a difference between programs that autopopulate data, such as Spark or a data source, and AI programs such as AIVRE or AppraisalPilot.

In 2.6, I did not use auto-population because it did not seem to save that much time, and if it saved 15 minutes, well, I can spend another 15 minutes on an appraisal. Inputting the data is not robotic; I was analyzing and thinking about it. However, 3.6 has so many data fields and lacks the ability to transfer comps in the fields; I will plan to use a program like DataSource to fill in the data, and then I will edit, verify, etc. Assuming I stay in business lol.

The AI programs are different - though they also auto-populate (I assume), what they also do is , if prompted, write narrative, pick comps, analyze, assign condition ratings from the photos, etc. I went on the AppraisalPilot site, and they said the AI will even "analyze" the sales contract! Anyone who sends a confidential sale contract to AI needs to do something else. The problem with AI is that it is open souce -htf else could these startups all get hold of it so fast - which means once the data is out there from us, bye bye any control over it, who it is shared with etc.

The AI provides, imo, significant appraisal assistance, and it should be disclosed by the appraiser if they used it as such, but I bet they won't. And the GSEs, as far as I know, do not have any plans to monitor specifically for that.

IDK how much time it saves - if a churn-and-burn appraiser briefly reads it and signs, it will save time. If the appraiser verifies, picks their own comps, edits, etc it will not save much time, if any.

 

[Zoe]

I need to call alamode and see if they are planning on adding some feature similar to what other software providers are selling like datasource or whoever. I don't understand how any of the major form software companies could not add similar features to some platforms that don't sell form software.

If these other companies can do it, why can't ACI, Bradford, Alamode?

 

[J Grant]

I need to call alamode and see if they are planning on adding some feature similar to what other software providers are selling like datasource or whoever. I don't understand how any of the major form software companies could not add similar features to some platforms that don't sell form software.

If these other companies can do it, why can't ACI, Bradford, Alamode?

Any of the data source, etc programs are available at an extra cost and can integrate with ACI, Bradford, Alamode, SFREP.
These programs are not free. They might be offered by the software providers, but these programs are from different providers.

By the time an appraiser utilizes all this help... a software program for UAD 3.6, a per-use or yearly charge for a data population program, a cost for an AI program, a portal charge, and if they work for an AMC, a chunk of the appraisal fee goes to the AMC. If it is a hybrid, another chunk of the appraisal fee goes to the PDR collector. The appraiser might end up in a negative cash flow position.

But we are supposed to be so excited about all this tech and army of folks swarming in to help us! No matter how much time we save, the number of orders will not increase. There is a finite number of loans made at any given time that would use an appraisal.

 

[chad hampton]

I just need to know how a computer looks at what’s written into the MLS catches all the mistakes that appraisers find based on their knowledge and experience of the market and somehow gets everything in the right spot in a report.

The typical agent has no clue how to enter stuff into an MLS properly. I see ADUs listed as basements, basements listed in above grade. Sometimes the pool isn’t even listed where it’s supposed to be, only mentioned in the summary and photos. Two car garages called three car garages. And now there’s a new term called vehicle storage that no one else in real estate use.

Not too late to scrap it all, throw it in the trash and fire everyone responsible

 

[J Grant]

I just need to know how a computer looks at what’s written into the MLS catches all the mistakes that appraisers find based on their knowledge and experience of the market and somehow gets everything in the right spot in a report.

The typical agent has no clue how to enter stuff into an MLS properly. I see ADUs listed as basements, basements listed in above grade. Sometimes the pool isn’t even listed where it’s supposed to be, only mentioned in the summary and photos. Two car garages called three car garages. And now there’s a new term called vehicle storage that no one else in real estate use.

Not too late to scrap it all, throw it in the trash and fire everyone responsible

MLS is a sales tool for RE agents, so the MLS does not have a vested interest in appraisal-type accuracy.

The RE agent ineptness and unreliability, which is the MLS listing service, is a form of job security for us lol. The fact that churn-and-burn appraisers might use AI to populate and then those appraisers will not take the time to verify or check themselves - it might or might not catch up with them, but at some point it could..

 

[Surf Cat]

I’m surprised that the GSE’s and state boards haven’t issued guidance on what is out there. Maybe they don’t know or maybe they don’t care.

It would appear they don't care. I mean, why send unlicensed, uninsured, non-trained personnel out to inspect the subject property? Why waive the requirement to view the comps curbside from the 3.6?

The appraisal just has to be "good enough."

That said, I'm a big fan of Spark though
(or was prior to selling to True Footage.) I chose the neighborhood boundaries, I chose the comps which went into the report, I wrote the commentary, I derived the market adjustments, I reconciled and came up with the opinion of value.... I just hate filling out the grid and all the minutiae....