Un supported adjustments

[Webbed Feet]

Are you sure the GSE automated appraisal models fell apart?

If hitting a horseshoe pit with a hand grenade is the desired outcome, then I would say AVMs work just fine.

Insofar as Economics is a science, then too is appraising (which is a specialized arm of Economics - predicting human behavior as it relates to the home purchase market).

Who claims that economics is a science? It takes more than just seeming to fit a framework to actually be qualified within any certain framework. There is a really big difference between a social science and a science. It is empirical relevance instead of mathematical rigor which is lacking in economics. Economics lacks testable hypotheses, consensus, and is rife with political overtones.

Of course that's possible. It's also possible that the adjustments aren't supported...

Adjustments can never be "supported" when 95% of the time the so-called support is really equal to fake news. Put ten appraisers individually (in a vacuum from each other) into a non-homogenous metropolitan area and ask them all to provide "support" for the same subject property GLA adjustment (should be easy right?) or how about a view adjustment while we are at it? We will get ten drastically different addendums "supporting" the adjustments and adjustments that are all over the place. My point is that it does not matter if an appraisal report has addenda that "supports" adjustment opinions, because they are opinions created from other opinions created from culled (using opinions) market data and analyzed using opinionated methods all selected by opinion. The only real meaning to supported or non-supported adjustments comes down to the answer to the question of "Did you try to look at market data for this?" Any form of "Yes" answer = a "supported" adjustment.

 

[Webbed Feet]

My last report was reviewed by AI - Cross Check. No humans involved. The requests for changes were coherent, but it was obvious that it wasn't reviewed by a human.

Just imagine, soon you will get an AI generated order, your business will negotiate the order terms and fees using AI, the appraisal report will be written by AI, and delivered by AI, Then AI generated lender stips will be sent and then answered by AI. AI will send payment and then all your administrative bookkeeping will be completed by..... yep.. more AI.

 

[Surf Cat]

Just imagine, soon you will get an AI generated order, your business will negotiate the order terms and fees using AI, the appraisal report will be written by AI, and delivered by AI, Then AI generated lender stips will be sent and then answered by AI. AI will send payment and then all your administrative bookkeeping will be completed by..... yep.. more AI.

Meet your new appraiser!

Take photos, measures with Cubicasa, and writes the report via AI.....

 

[sputnam]

And how many appraisers will be doing this for court and private work? Too many.

None of is responsible for what other appraisers do. Only, for what we do ourselves. UAD is not required unless the appraisal report is intended for a GSE. If another appraiser can't be bothered to write a non UAD report... because they don't have a template for it, I guess.... that isn't my problem.

 

[Tom D]

Just imagine, soon you will get an AI generated order, your business will negotiate the order terms and fees using AI, the appraisal report will be written by AI, and delivered by AI, Then AI generated lender stips will be sent and then answered by AI. AI will send payment and then all your administrative bookkeeping will be completed by..... yep.. more AI.

You got this wrong. AI is too smart to send the order to the human appraiser. It will send it to itself, do it itself, pay itself, and irs itself. Humans have no home here, just a AI thought.

 

[Mark K]

In my experience, it is difficult to proofread one's own work. In my old firm, we always swapped reports and had another appraiser read it. It was really amazing the things that they found that were not found with spell check, etc.

In my RW work all of my reports went directly to a reviewer. Here, the state requires either 2 appraisals or 1 appraisal and a formal review.

I'd prepare the report, re-read it, let it sit overnight, re-read it the next day and fix the problems and then send it out for review. Nevertheless, the reviewer nearly always found something that I missed. Rarely anything to do with the numbers, always something in the narrative sections.