My prediction on 3.6

[J Grant]

I just have one question. When AI makes a mistake that ends up in my report, and it will, whose feet will be held to the fire? I'm guessing not the AI vendors.

The AI vendor did not sign the report, you did.

 

[Zoe]

The AI vendor did not sign the report, you did.

If waivers or whatever else are done, then it will go back on lender or GSE or somebody else.

If you do hybrids, the inspector is not signing your appraisal report. I don't sign home inspector reports and they don't sign my appraisal reports.

 

[Zoe]

I don't do hybrids either. I don't plan on it.

 

[Vermonter]

You nailed it! Bullseye! But that finger is pointed the wrong direction.

Well I mean she did read that book on AI 2 years ago

 

[Vermonter]

Your wrong there. Do you remember some of the lawsuits that have come from borrowers?

They could come from anybody where AI screws up.

Delusions of grandeur won't reduce your liability

 

[nachocheesefries]

Imo, you overestimate AI and its ability to select comps. Your knowledge of it sounds superficial and naive.
The old way has certain standards of development that can use AI for certain functions - but giving it over to AI is another thing entirely.

If AI is right on a mass scale, that's great. If AI is wrong on a mass scale - then what? And there are always fraudsters and hackers who can get in and manipulate results - AI allows them to do that on a mass scale as well.

And I think you underestimate it, which if fine. I wish things would stay as they are too. This blows and is going to be a big disruption to our field. AI is evolving everyday...just because you can't see it pulling comps on June 16, 2026 does not mean by this time next year its not going to widespread and relatively effective.

It may not ever be effective for comp selection but I suspect it will be good enough. I am tired of people misleading everyone with their heads in the sand thinking appraisers are gonna be filling out that damn alamode form for hours on end. Its not gonna happen. There are much faster and better alternatives...once people figure it out, they will jumping ship to get away from that alamode form. I support alamode and always have, but there solution for 3.6 is the biggest heap of trash I have ever seen when stacked next to other alternatives. I will quit before I use it.

Not a schill...just finally had time to research and process the information objectively, as I do almost everything in my life. I want people on here to at least explore ways to not go down with the ship. I was on that boat until a few weeks ago.

 

[nachocheesefries]

How is it different - if individual appraisers in 2.6 blindly used poor adjustments, at least it was confined to those individuals and they could be parsed out, or educated. But AI is deployed on a mass scale - thus thousands of appraisers, if not monitored and reviewed, can download the same slop.

If AMC fees continue to be low, with a humiliating bid process to get an order, then why wouldn't an appraiser become cynical and fast burn and churn? They can clearly see how devalued they are. If the appraisers who take the time for their own analysis are not rewarded for it or fairly compensated for it, then they will leave the business or churn out AI slop themselves. Can clients who value good appraisals even survive? IDK the answer, but the problems are well known and not being addressed.

Many clients care about quality...FNMA/Freddie/FHA do not...its not their money. We all cannot rely on the 30% of lender work /portfolio work coming from clients that want quality.

 

[nachocheesefries]

Your wrong there. Do you remember some of the lawsuits that have come from borrowers?

They could come from anybody where AI screws up.

The amount of slop I see from human appraisers.....this is not about those of us that are good. Its about those that don't care and are going to have a new superpower to fly through reports. We are just gonna sit an watch them or try and compete?

 

[Zoe]

Delusions of grandeur won't reduce your liability

I work a very heterogeneous single family market for the most part. Ask many appraisers in Tennessee if AI can do what they do.

Memphis area is worst from a big city standpoint. Many areas in Tennessee are rural and very heterogeneous. AI could screw up quick in Memphis and especially in downtown Memphis.

 

[nachocheesefries]

Especially in a very heterogeneous single family market. AI won't know where to get the best comparables. Census tract won't work. What if there are few sales in the subject subdivision and AI has to jump areas to find the most similar comparables to the subject?

I am saying you will review and throw out what you don't like, then get new ones in three seconds until the grid looks how you want it.