Recent Executive Orders Affecting Appraisers

By on June 12, 2026   /   AI, appraisal business, appraisal how to, appraisal regulations, lender appraisals, Uncategorized, USPAP   /   Leave a comment

Newz: Recent Executive Orders Affecting    Appraisers, When Appraisers Take the Stand

June 12, 2026

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: A case of forgery
  • Recent Executive Orders: Threat, Opportunity, or Both for Appraisers? By Kim Perotti, AXIS AMC
  • $22.8 Million Aspen Home With Its Own Private Waterfall Feels Like a Real-Life Fairy Tale
  • MY AD: If the Standards Are Uniform, Why Isn’t Your License? By Thaddus Dawson, Jr., CG
  • When Appraisers Take the Stand By By David C. Wilkes, Esq., CRE, FRICS and Kevin M. Clyne, Esq., CRE
  • Agents, Are You Using AI to Price Your Listings? By Tom Horn
  • 10K Appraisers. Policy and Advocacy Day, By 10K Appraisers Foundation
  • MBA: Mortgage applications increased 10.8 percent from one week earlier

Recent Executive Orders: Threat, Opportunity, or Both for Appraisers?

By Kim Perotti, a founding partner of AXIS AMC

Excerpts: In March 13, 2026, President Trump signed two Executive Orders that together amount to a clear message for our profession: build more houses, make credit easier, and get the valuation piece done faster and cheaper. We think it’s critically important that our industry discuss the implications.

The two orders are:

REMOVING REGULATORY BARRIERS TO AFFORDABLE HOME CONSTRUCTION

AND PROMOTING ACCESS TO MORTGAGE CREDIT

While they are not “about” appraisers, the Executive Orders will absolutely reshape the environment in which we work. Appraisers who treat these as background noise will find the ground shifting under their feet. Those who read them as a roadmap can pick their spots and come out stronger and, more importantly, help shape how they are put into practice.

REMOVING REGULATORY BARRIERS TO AFFORDABLE HOME CONSTRUCTION:

Faster, Cheaper Construction – What That Really Means for Your Desk

PROMOTING ACCESS TO MORTGAGE CREDIT: Faster, Cheaper Valuations – Where the Squeeze Shows Up – Second Order

The second order takes direct aim at how loans—and valuations—get done. The theme is unmistakable: streamline, digitize, and de-emphasize technical compliance.

For appraisers, here are the potential realities:

More alternative valuation products: Regulators are being encouraged to expand the use of AVMs, desktop, and hybrid appraisals and reduce full appraisal requirements on low-risk and small-balance loans. You should expect more hybrid and desktop requests and data-only products as well as a clearer dividing line between high-volume, low-margin work and complex, higher-risk assignments.

Pressure on fees and turn times: Agencies are being asked to set “clear appraisal timelines” and cut costs and therefore lenders will likely lean harder on speed and price whenever a waiver, AVM, or hybrid is allowed, and traditional assignment ordering will have to justify itself on risk grounds.

Changes in who can appraise and how: The order invites simplification of appraiser qualification requirements. Easier entry could mean more competitors and lenders may fill low-fee niches with less-experienced personnel or non-traditional vendors.

If your business is built primarily on simple, low-risk assignments, this is a direct competitive challenge.

Alignment of FHA and VA rules: HUD and VA are asked to align standards where risk is comparable, clarify what truly requires pre-closing repairs vs. what’s cosmetic, and expand post-closing repair flexibility.

That could change the frequency and scope of “subject to” conditions, reduce some friction and disputes around FHA/VA appraisals, and make your judgment about safety vs. cosmetic issues more visible and important.

In summation, this order calls for more technology and alternatives, more pressure on traditional appraisals, and more segmentation of valuation products by risk level.

A Clear Fork in the Road for Appraisers

Taken together, these two Executive Orders point in one direction: more volume, more complexity at the edges of the market, and more pressure to commoditize anything that looks “low risk.” Together they create a fork in the road for real estate appraisers:

If you stay in the lane of interchangeable, low-complexity assignments, you will feel the squeeze—from technology, from relaxed standards, and from new entrants.

If you lean into complexity—new construction, manufactured and modular, fringe markets, environmental and hazard issues, FHA/VA nuance—you become harder to replace, not easier.

This doesn’t mean abandoning efficiency or refusing alternative products. It means being fluent in hybrids and desktops so you can decide which work makes sense for you, positioning yourself as the expert when a lender can’t responsibly rely on an AVM or a waiver, and building documented expertise in the exact areas these orders will expand.

To read more, Click Here

My comments: Definitely worth reading. All about what this means for appraisers in detail. The best analysis for appraisers I have read about this executive order. The author is definitely an “insider” as she is Co President of AXIS, a long time AMC. When I wrote one of my first articles on AMCs, I interviewed AXIS.

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$22.8 Million Aspen Home With Its Own Private Waterfall Feels Like a Real-Life Fairy Tale

Excerpts: 5 bedrooms, 5.5 baths, 5,294 sq.ft., 0.86 acre lot, built in 1974

Mountain views and luxury interiors are practically a given in the upscale Colorado resort of Aspen, but a private waterfall cascading under your living room? That’s quite rare, to say the least.

Yet that is exactly what’s on offer at the aptly named 87 Magnifico Drive, an extraordinary property that is perched atop Aspen’s Lower Red Mountain but looks like it was dropped straight out of the pages of a fairy tale.

The idyllic home has recently returned to the market with a price tag of $22.75 million, a significant reduction after its initial debut at $29.95 million. And while Aspen is no stranger to trophy properties, this one, which is listed with Mandy Welgos of Sotheby’s International Realty, is particularly special.

Indoor-outdoor living is at its best with expansive patios and beautifully landscaped gardens framed by tranquil waterfalls.

To read the listing with 46 photos, aerial views and 3D views, Click Here

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When Appraisers Take the Stand

By David C. Wilkes, Esq., CRE, FRICS and Kevin M. Clyne, Esq., CRE

Excerpts: Real estate appraisers have long played an essential role in litigation involving property valuation. Courts frequently rely on experienced valuation professionals to provide independent opinions in disputes ranging from eminent domain and property tax appeals to partnership disputes, lender litigation, insurance claims, and complex commercial real estate matters. In many of these cases, the court depends on the appraiser to translate market evidence into a clear and reliable opinion of value.

In today’s environment, the legal landscape surrounding expert testimony has become more demanding. Courts are applying greater scrutiny to expert methodologies, litigants are increasingly aggressive in challenging valuation opinions, and expert witnesses face growing exposure to regulatory complaints and civil liability. For appraisers who accept litigation assignments, understanding these evolving risks is now an important part of professional practice—particularly for those working in insurance, financial, and risk-management related matters where valuation conclusions can have significant financial consequences.

Courts now routinely evaluate the reliability of expert testimony before allowing it to be presented at trial. Judges often examine whether an expert’s methodology is grounded in accepted appraisal principles and whether those principles were applied appropriately to the facts of the case.

For valuation professionals, this scrutiny frequently focuses on several core components of the appraisal process:

• Selection of comparable transactions

• Support for adjustments

• Highest and best use analysis

• Treatment of market conditions

• Reconciliation of valuation approaches

To read more, Click Here

My comments: Excellent detailed discussion of issues in expert witness testimony. I have done expert witness testimony. This is worth reading, just in case the opposing attorney knows what is in this article! I have been lucky and did not ever have an opposing attorney who knew much about appraisals.

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If the Standards Are Uniform, Why Isn’t Your License?

In the June, 2026 issue of Appraisal Today

By Thaddaus Dawson, CG

Excerpts: Let me ask you something that every appraiser reading this has lived but perhaps never named out loud.

If the standards governing your work are truly uniform, if every appraiser in

America is tested on the same national examination, trained on the same USPAP framework, and evaluated against the same qualification criteria, then why does your license not transfer across state lines without a fee, a waiting period, and a bureaucratic prayer?

The answer to that question is the answer to everything wrong with this profession for the past 38 years.

The Appraiser Qualifications Board presented the results of a national job study of 3,691 appraisers surveyed across all 50 states and the District of Columbia. The findings were definitive. Appraisers in every state perform the same job, at the same frequency, rated at the same level of importance. The data is not ambiguous.

The job is uniform. The examination is uniform. The standards are uniform.

But the enforcement is not. And that is the delusion that has governed this

profession since 1989.

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Monday, June 1, 2026 please email info@appraisaltoday.com, and we will send it to you. You can also hit the reply button. Be sure to include a comment requesting it. Or, call 510-865-8041

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Agents, Are You Using AI to Price Your Listings?

By Tom Horn

Excerpts: Don’t Let AI Kill Your Next Deal

You knew it was going to happen. Everybody is using AI to answer questions, help them write better, and create ultra-realistic photos and videos. It was just a matter of time before someone asked AI what their home is worth or how much a home should be listed for.

To accurately price, or appraise, a property, local knowledge and expertise are needed. This knowledge is needed to choose the right data and to apply judgment to the information. To be blunt, AI does not have this type of ability. Not yet, anyway. It’s also important for the user of the AI model to know the right questions to ask.

Getting back to my recent experience, it turns out that the information the AI model collected to support its value suggestion was inaccurate. In addition, some of the “comps” were not even in the subject property’s competitive market area. All of this combined resulted in the property being priced too high. The appraisal came in lower than the contract, and while the property did sell, it was for much lower than the list and contract price.

Speaking of square footage, one of the issues I saw with the square footage that AI used in my example was that it combined all of the living areas together. It added the heated and cooled areas in the basement to the above-grade area, which is a big no-no.

While all areas of a house are included in the final value, the basement area typically contributes a different amount than the main levels. If you combine them and apply a single price per square foot adjustment, the basement may be overvalued.

These inaccuracies will be found out if an appraisal is required for financing by the buyer. The appraiser will separate the basement area from the above-grade area, which can result in differences between the appraisal and contract price.

The data AI relies on can be wrong

Just like the infamous Zillow Zestimate, AI uses information from public records, like square footage. Public records are famous for having incorrect square footage information on a house.

If you rely on public records for the property you are pricing and the comps, that is a double whammy. The price per square foot of a sale that is calculated by dividing the sale price by the square footage can be wrong, and then if you multiply that by the incorrect square footage of the subject property, that can result in a property value indication that has no resemblance to reality.

To read more, Click Here

My comments: Definitely worth reading to understand how home owners and real estate agents may be using AI, typically a chatbot. Then you can explain why AI does not work well.

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Policy and Advocacy Day, By 10K Appraisers Foundation

Saturday, June 20• 9 AM – 4 PM

The coalition that will codify Reconsideration of Value comes together.

Overview

You will learn about the federal policy impacts of the Executive Order Section 6 Appraisal Modernization, to correct the 90% FHFA failure .

Saturday, June 20, 2026 is the Policy and Advocacy Day.

Saturday is where the coalition that will codify Reconsideration of Value comes together. You will learn about the federal policy impacts of the President’s Executive Order on Section 6 Appraisal Modernization, the EGRPRA testimony record, the May 11 coalition letter, the 90 percent FHFA failure rate, and the structural reforms the 10,000 Appraisers Foundation has placed in the permanent congressional record. You leave Saturday prepared to lobby your members of Congress and your state legislators for the codification of Reconsideration of Value under Section 1981 as a universal contract protection for all Americans.

The mission.

This is the coalition that will build the Federal Appraisal Enforcement Authority, secure the Single National Appraisal License, and finally extend the protection roughly 17 million American veterans already enjoy to the more than 260 million American adults currently without it.

Come witness the profession that shows up.

Ammancipation Day. Atlanta. June 19 and 20, 2026.

Liberation Through Valuation: Where Soul Meets Soil.

Saturday is for the appraisers

To read more about the event and register, Click Here

For more info on the founder and organizer, Thaddaus Dawson, CG, Click Here

My comments: I published his excellent article “Miseducation of the Appraiser Series”, in the June 2026 issue of Appraisal Today. Read an excerpt from the article he wrote above. He is well known as an advocate for challenging and changing ROVs.

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HOW TO USE THE NUMBERS BELOW. Appraisals are ordered after the loan application. These numbers tell you the future for the next few weeks. For more information on how they are compiled, Click Here.

Note: I publish a graph of this data every month in my paid monthly newsletter, Appraisal Today. For more information or get a FREE sample go to www.appraisaltoday.com/order Or call 510-865-8041, MTW, 7 AM to noon, Pacific time.

My comments: Rates are going up and down. We are all waiting for rates to drop lower in 2027.

Mortgage applications increased 10.8 percent from one week earlier

WASHINGTON, D.C. (June 10, 2026) — Mortgage applications increased 10.8 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 5, 2026.  Last week’s results included an adjustment for the Memorial Day holiday.

The Market Composite Index, a measure of mortgage loan application volume, increased 10.8 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 21 percent compared with the previous week. The Refinance Index increased 15 percent from the previous week and was 20 percent higher than the same week one year ago. The seasonally adjusted Purchase Index increased 7 percent from one week earlier. The unadjusted Purchase Index increased 17 percent compared with the previous week and was 4 percent higher than the same week one year ago.

“Mortgage rates were volatile last week as news from the Middle East continues to drive markets,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “While the average rate was up slightly, with the 30-year fixed rate now at 6.60 percent, there were opportunities where borrowers were seeing somewhat lower rates. Both refinance and purchase applications rebounded coming out of the Memorial Day holiday week, with refinance applications up 15 percent and purchase applications up 7 percent.”

The refinance share of mortgage activity increased to 40.2 percent of total applications from 38.0 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8.6 percent of total applications.

The FHA share of total applications increased to 17.4 percent from 17.0 percent the week prior. The VA share of total applications decreased to 13.4 percent from 14.4 percent the week prior. The USDA share of total applications decreased to 0.4 percent from 0.5 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) increased to 6.60 percent from  6.57 percent, with points decreased to 0.63 from 0.67 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $832,750) remained unchanged at 6.66 percent, with points increasing to 0.54 from 0.35  (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.27 percent from  6.26 percent, with points increasing to 0.78 from  0.75 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 5.99 percent from 5.93 percent, with points decreasing to 0.68 from  0.76 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs increased to 5.96 percent from  5.82 percent, with points decreasing to 0.75 from 0.88 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The survey covers U.S. closed-end residential mortgage applications originated through retail and consumer direct channels. The survey has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, thrifts, and credit unions. Base period and value for all indexes is March 16, 1990=100.

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Ann O’Rourke, MAI, SRA, MBA

Appraiser and Publisher Appraisal Today

1826 Clement Ave. Suite 203 Alameda, CA 94501

Phone: 510-865-8041

Email:  ann@appraisaltoday.com

Online: www.appraisaltoday.com

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Adapt or Step Back? How UAD 3.6 Is Forcing a Career Decision for Appraiser

By on May 29, 2026   /   AI, bias, state appraiser regulators, UAD 3.6   /   Leave a comment
Tags: , , ,

Newz: UAD 3.6 Adapt or Step Back,

Getting Started With AI

May 29, 2026

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Too Late for a Reconsideration of Value
  • Adapt or Step Back? How UAD 3.6 Is Forcing a Career Decision for Appraisers, By Rachel Mann
  • 109-Year-Old ‘Boathouse’ That Appears To Float on Washington Canal at High Tide Hits the Market for $2.1 Million
  • Getting Started with AI for Appraisers
  • MY AD: Loose Lips Cause Claims (Loose Lips Lead to Lawsuits) By Claudia Gaglione, Esq.
  • Wells Fargo Settles Mortgage Discrimination Suit With $100M Fund To Help Low-Income Homebuyers
  • HB 355 and What Every Appraiser Should Learn from Kentucky’s Legislative Win, By Bryan S. Reynolds, MNAA
  • MBA: Mortgage applications decreased 8.5 percent from one week earlier

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Adapt or Step Back? How UAD 3.6 Is Forcing a Career Decision for Appraisers

By Rachel Mann

Behind the technical transition lies a more personal question: Is it worth starting over at this stage of a career?

Excerpts: A Profession Split in Real Time

While there’s plenty of buzz around UAD 3.6 itself, it’s worth taking a boots-on-the-ground look at what active appraisers are actually feeling. In a recent industry poll conducted on Facebook, the findings were telling.

Out of 233 responses from active appraisers, 36.5% reported they are actively preparing, while 36.1% are taking a “wait and see” approach. The remaining responses, which we’ll get into below, reveal the deeper undercurrents.

The clear takeaway is that the industry isn’t aligned. There’s real uncertainty in how appraisers are responding to the shift, and a large unknown hanging over the profession.

And it raises a question: Is the uncertainty driven by the change itself, or by the lack of clear options for what happens next?

Appraiser Voices: Real Reactions to UAD 3.6

Beyond the “actively preparing” and “wait and see” camps, smaller groups of respondents revealed the deeper anxieties at play.

About 8.2% cited concerns about the learning curve, 4.7% said they’re considering stepping back from volume, and 2.6% plan to retreat into private work only.

Another 12% fell into smaller categories ranging from software testing readiness and hardware concerns to skepticism about implementation timelines.

The overall picture is a mix of readiness, hesitation, and resistance — revealing capacity limits and decision fatigue at a critical moment: adapt or step back? The underlying question for those nearing retirement is: Is it worth the time, cost, and effort to adapt at this stage in my career?

When a Workflow Change Becomes a Career….

A sudden decline in active appraisers could carry real consequences:

  • Loss of experienced appraisers who currently make up the majority of the workforce
  • 2. Disruption of long-standing client relationships, leaving lenders, AMCs, and homeowners scrambling
  • A thinning mentorship pipeline for new appraisers, weakening the path forward for the next generation
  • These changes, paired with the lack of exit planning, have broader implications. This isn’t an individual issue; it impacts industry stability and continuity.

To read more, Click Here

My comments: Worth reading the entire post for the details and interesting comments.

Read more!! →

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Appraisal Construction Progress Reports

By on April 24, 2026   /   AI, bias, Economic analysis, New URAR   /   Leave a comment

Newz: Curiosity and AI, Construction Progress Reports

April 24, 2026

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Construction Progress Reports: Don’t Get Hammered
  • The Human Appraiser as a Macroeconomic Stabilizer By Kevin Hecht
  • Spectacular Glass Cabin Located Mere Steps From the Beach Lists for Less Than $175K
  • Appraisal Bias Training Now Required in Most States [2026]
  • MY AD: Review of Appraiser’s Guide to the New URAR Class
  • Curiosity in the Age of AI By Brent Owen
  • AI in real estate. Chat GPT can’t smell the 10 cats in the house By Ryan Lundquist
  • MBA: Mortgage applications increased 7.9 percent from one week earlier

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Read more!! →

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Appraising Solar Panels

By on April 3, 2026   /   adjustments, AI, appraisal how to   /   Leave a comment
Tags: ,

Newz: Solar Panels, Concessions, AI and Appraisals

April 3, 2026

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Navigating Red Flags: a Contentious Divorce Case
  • What Is the Appraisal Value of Solar Panels? FAQs for Residential Appraisers
  • Tiny New York Home With No Bedrooms Hits the Market for a Bargain Price
  • Concessions Are Not the Price: How to Measure What the Market Is Actually Doing
  • MY AD: How to reduce stress to be more productive in business and a happier life for appraisers
  • My First 50 Years by Steve Papin
  • AI Usage in Appraisals: Trust but Verify by Jo Traut
  • MBA STATS: Mortgage applications decreased 10.4 percent from one week earlier

 

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What Is the Appraisal Value of Solar Panels? FAQs for Residential Appraisers

Excerpts:

How Common Are Solar Panels in Residential Appraisals?

Solar panels are increasingly common. Declining system costs, government tax incentives, and utility rebates have made solar PV ownership more accessible than ever. If you haven’t encountered an owned solar system on a subject property yet, there’s a good chance you will soon—particularly as more states push toward renewable energy goals.

The practical takeaway: developing a working knowledge of solar valuation now puts you ahead of the curve.

Topics:

Owned vs Leased Solar Panels—and Why It Matters for Appraisers

How Do You Determine the Appraisal Value of Solar Panels?

  • Sales Comparison Approach. This is the preferred method under Fannie Mae and FHA guidelines.
  • Cost Approach Solar PV systems are typically priced on a cost-per-watt or cost-per-kilowatt basis.
  • Income Approach This method estimates value based on the energy savings the system produces.

What Do You Do When There Are No Comparable Sales with Solar Panels? This is the question appraisers ask most often, and it’s a real challenge in many markets.

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What Are the Key Components of a Solar PV System that Appraisers Should Be Able to Identify?

How Can Appraisers Build Competency in Solar Valuation?

Solar PV systems are one piece of a broader green home appraisal niche that’s growing fast.

To read more, Click Here

My comments: Very comprehensive analysis of the important factors. I have never appraised a home (or apartments and commercial properties) with Solar. I live in a “Mediterranean” climate in the San Francisco Bay area. No big changes in weather over the year. No snow, no high heat etc. But I have heard appraisers discussing the topics above. If I appraised Solar in a home I would use this article.

Read more!! →

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UAD 3.6 and Appraisal Workflow

By on March 13, 2026   /   AI, humor, real estate market, statistics, UAD 3.6, Uncategorized   /   Leave a comment
Tags: , , ,

Newz: Practical AI Uses for Appraisers, Appraisal Forms Humor 

March 13, 2026

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Client Insists on Cost to Cure
  • UAD 3.6 Is Coming: A Practical Moment to Rethink Your Workflow
  • Appraisal By Kevin Hetch
  • One of Palm Springs’ ‘Storied’ Rock Houses Hits the Market for $1.5 Million: ‘A Rare Treasure’
  • Getting 94 offers & a tighter housing market By Ryan Lundquist
  • MY AD: Do I really have to report that state board issue to my E&O insurance? By Peter Christsen, Esq.
  • Beyond the Hype: How I’m Using AI to Actually Save 10 Hours a Week By Dustin Harris
  • Appraisal Forms – the next Generation – Humor
  • MBA : Mortgage applications increased 3.2 percent from one week earlier

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UAD 3.6 Is Coming: A Practical Moment to Rethink Your Workflow Appraisal

By Kevin Hecht

Excerpts: For many appraisers, the transition to UAD 3.6 feels different from past form updates. This is not simply a revised version of the URAR with a few new fields or definitions. It represents a structural shift in how appraisal data is organized, communicated, and delivered.

While change on this scale can feel disruptive, it also creates an opportunity to improve efficiency, modernize workflows, and position your business for the future.

This transition is not just about learning a new report format. It is about adapting to a new data-centric environment. And one of the most important places to start is with your appraisal software.

This Is a Moment of Opportunity

Transitions like this can feel uncertain, but they also offer a chance to improve how you work.

By taking time now to understand UAD 3.6, evaluate your software options, and refine your workflow, you can position your business to operate more efficiently and confidently in the new reporting environment.

The goal is not simply to adapt. It is to build a workflow that supports you well into the future.

UAD 3.6 is coming. And with the right preparation, it can be a step forward for both the profession and your practice.

Topics

  • This Is More Than a Form Update
  • Start by Looking at Your Process, Not Just Your Software
  • Not All Software Will Handle This Transition the Same Way
  • Efficiency Gains Are Possible, But They May Require Change
  • Focus on What Supports Your Business Long Term
  • The Appraiser’s Role Remains the Same
  • This Is a Moment of Opportunity

To read more, Click Here

My comments: I had never thought about the “big picture”: how the software affects your business. Worth reading.

I have been writing about the appraisal software for a year and just wrote another article on Appraisal software vendor Timelines for my April newsletter. Only 1 or 2 are ready to go. The others need more work done. Appraisers cannot learn to use the software until it is fully completed.

Why is this going so slow? The GSEs did not check with the software vendors to see how much time they needed to complete their software. The actual time needed has been longer than expected. Also, GSE requirements to make all the software the same for the reporting section had to be exactly the same for all the vendors. Also, PDF and XML reports must be correctly done. Getting this all validated by the GSEs is taking time.

Read more!! →

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Paired Sales for Appraisers

By on February 27, 2026   /   adjustments, AI, appraisal business   /   Leave a comment
Tags: , , ,

Newz: Paired Sales Analysis, AI and Appraisers?

February 27, 2026

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: When Confidentiality Agreements Conflict with USPAP
  • Paired Sales Analysis: Tips and Tools for Appraisers
  • Converted Church With Bell Tower and Pulpit Lists for $225K
  • Determining Assignment Conditions in a Vacuum By Jo Ann Aposto
  • MY AD: An Appraiser Gets Audited by the IRS! My Story Don’t Make My Mistakes! By Ann O’Rourke
  • Artificial Intelligence: Friend or Foe of Appraisers?
  • Fed moves to pull mortgages back into banking fold
  • MBA: Mortgage applications increased 0.4 percent from one week earlier

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Paired Sales Analysis: Tips and Tools for Appraisers

By Kevin Hecht

Excerpts: Though not without challenges, paired sales analysis is a valuable technique to have in your appraisal toolkit. Mastering this method will help you develop more accurate, credible, and defensible appraisals.

This guide presents a step-by-step approach to performing paired sales analysis, practical tips and tools to improve your accuracy, plus strategies to overcome common challenges like sparse comparable data.

Paired Sales Analysis Example

For example, suppose two very similar homes in the same neighborhood sell within three months of each other. One house has a separate two-car garage, while the other does not. If the garage-equipped home sold for $15,000 more, you can reasonably infer that the garage adds $15,000 in value.

Uses

Primarily used in the sales comparison approach, paired sales analysis is particularly useful for estimating the value of unique property attributes such as:

  • Location advantages (corner lots, cul-de-sac positions, or waterfront access)
  • Scenic views or privacy features
  • Property upgrades (pools, finished basements, luxury kitchens)
  • Additional structures (workshops, guest houses, storage buildings)
  • Land size variations or irregular lot configurations

TOPICS

  • What is paired sales analysis
  • Step-by-Step Methodology of a Paired Sales Analysis…
  • Paired Sales Analysis Tips and Best Practices
  • Additional Tips Shared by Appraisers
  • Overcoming Challenges: What to Do When Data Is Sparse

To read more, Click Here

My comments: Comprehensive and definitely worth reading. I have regularly used paired sales, when I could find good comps. I often go back in time, as market conditions adjustments are easy to do. I got a few new ideas I had not thought of before in this article.

Read more!! →

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UAD 3.6 Appraisal Fees

By on February 6, 2026   /   AI, AMCs, Appraisal fees   /   Leave a comment
Tags: , ,

New URAR and UAD 3.6 Appraisal Fees, AMC Tech Fees

February 6, 2026

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Using trainees – the safe way
  • Will the New URAR and UAD 3.6 Impact Appraisal Fees?
  • It looks like an SF apartment complex. It’s actually a $32M estate.
  • From Dealerships to AMCs: Tech Fees as the New Normal by Desiree Mehbod
  • MY AD: New in the February 2026 issue of Appraisal Today. Book Review: Mein Comp: The Last Appraiser
  • “Because Houses Are Human” AI and Appraisers By David Hyman
  • Architecture Is About to Grow a Nervous System
  • Buildings that are alive
  • MBA: Mortgage applications decreased 8.5 percent from one week earlier

Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news

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Will the New URAR and UAD 3.6 Impact Appraisal Fees?

Excerpts: With the new URAR and UAD 3.6 rolling out this year, you may be wondering what effect this will have on your fees. While there’s still a lot of uncertainty and speculation around this question, we’re sharing the opinions of professional real estate appraisers who answered our survey, “How do you anticipate the new URAR/UAD 3.6 changes will impact your appraisal fees?”

FEE INCREASES

Over 40% of respondents said they expect their appraisal fees to increase. Still, many respondents (28%) said they anticipate that fees will remain static, and 31% said they are not sure yet. Read their comments below to learn why or why not some appraisers believe their fees will increase with the new URAR and UAD 3.6.

APPRAISER RESPONSES

I Expect Fees to Increase” (41%)

“I have had ample time to practice the new 3.6 through my software and the inspection time will be increasing substantially…. Inspections are going to take some time especially if the dwelling is more than 1,000sf, which most in my market area are well above that. The report cannot be submitted until all sections are 100% complete, so there will be more time contacting agents, homeowners, town facilities, etc. Hoping the learning curve will be quicker than it appears at this point in time.”

I Expect Fees to Stay About the Same” (28%)

FEES REMAIN THE SAME

“I think it will be more labor intensive in the field but easier once you get back to the office.”

“I expect fees to stay the same. There may be less form filling; however, the analysis will remain the same. It’s not about the form or the analytics tools we use; it’s the analysis itself.”

The Bottom Line

While many appraisers anticipate that UAD 3.6 and the new URAR will initially require more time, tighter workflows, and new technology investments, the longer-term outlook is more balanced and, in many ways, promising.

Transitions of this scale often come with short-term growing pains, but clearer data standards, more structured reporting, and modernized tools are designed to create greater consistency and efficiency once the learning curve levels out. As several respondents pointed out, it will take real-world experience to understand where timelines and workloads ultimately settle.

At the same time, the new form offers appraisers a stronger platform to demonstrate the depth of their analysis, judgment, and market expertise.

To read more, Click Here

My comments: THIS IS THE HOTTEST TOPIC IN RESIDENTIAL LENDER APPRAISING. Appraiser opinions are useful but we all want to know what AMCs are planning for fees. I anticipate higher fees by AMCs, borrowers and direct lenders. I have been writing about what is happening since early this year, including details of all the “questions” and uncertainties on the SFR report.

Another significant fee factor is that many appraisers are retiring or quitting because they don’t want to learn the UAD 3.6 for appraisers. Those who stay will have lots of appraisal work as the 11-2-26 mandatory deadline approaches.

UAD 3.6 is not mandatory until November 2, 2026. The Legacy forms will be used during the transition. Will it be done by 11-2-26? Now, software vendors and lenders are way behind. 11-2-27 new mandate date???

On the plus side, 41% of appraisers said fees would go up and are positive about the new reports.

Read more!! →

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AI and Appraisers

By on January 30, 2026   /   AI, appraisal, Appraisal Qualifications Board, UAD 3.6   /   Leave a comment
Tags: , , ,

Newz: UAD 3.6 Started for Lenders, AI and Appraisers

January 30, 2026

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What AI Means For Appraisers

Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news

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What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Safety issues not fixed
  • 7.5 Things AI Is Already Doing Better Than Most Appraisers (And Why That’s Okay) By Mark Buhler
  • EXCLUSIVE: Tech Mogul Lists His Custom-Built Coral Gables Megamansion for Sky-High Price of $22 Million
  • Critical Thinking and the Intellectual Deficit in Real Estate Appraisal Qualifying Education by Timothy Andersen
  • MY AD: Appraisers’ Guide to the New URAR by Dave Towne
  • GSEs: Available Now in Broad Production: UAD 3.6 and Forms Redesign
  • URAR: Expect The Unexpected. How UAD 3.6 affects lenders
  • MBA: Mortgage applications decreased 8.5 percent from one week earlier

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7.5 Things AI Is Already Doing Better Than Most Appraisers (And Why That’s Okay)

By Mark Buhler

A while ago I wrote about “7.5 Things Appraisers Can Do That Artificial Intelligence Cannot”—the human parts of the job AVMs and algorithms still can’t touch: judging condition and quality, interpreting oddball features, smelling the house, defending adjustments, testifying in court, and exercising professional judgment under pressure.

None of that has changed.

What has changed is the toolset. AI is already doing parts of the workflow faster, cheaper, and more consistently than most humans—not the appraisal itself, but much of the heavy lifting underneath it:

Data gathering and sorting

Pattern detection

First-draft writing

Basic consistency and error checks

You will not beat AI at those tasks. The good news is you do not need to.

7.5 Tools you need:

1. Sifting Massive Datasets for Patterns

2. 2. Generating a First-Pass Comp Set

3. Producing Market Metrics and Adjustment Support on Demand

In my first article, I argued that AI cannot judge condition, interpret quirks, smell the house, testify in court, or exercise professional judgment. That remains true.

What has changed is the gap between appraisers who leverage AI and those who pretend it does not exist. The market is looking for valuation professionals who can…

To read more, Click Here

My comments: Definitely worth reading, including all 7 of the Tools.

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EXCLUSIVE: Tech Mogul Lists His Custom-Built Coral Gables Megamansion for Sky-High Price of $22 Million

Excerpts: 7 bedrooms, 7.5 baths, 7007 sq.ft., 0.47 acre lot, built in 2018

It was the unobstructed views out over the water that first drew the tech expert to the property, as well as the privacy offered by its location in a secure gated community, and the fact that the Bahamian island chain of Bimini is just a 1.5-hour boat ride from the home’s dock.

From the outside, the home could be mistaken for a resort thanks to its lavish pool, built-in barbecue, firepit lounge, outdoor kitchen, expansive waterfront terraces, and a basketball or volleyball court by the water—all of which make for a rare backdrop of relaxation and play.

Elsewhere on the grounds, there are two private docks that accommodate a superyacht of more than 100 feet, a 30,000-pound boat lift, and access to Biscayne Bay.

To read more, Click Here

To see the listing with an aerial view, virtual tour and 60 photos, Click Here

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Critical Thinking and the Intellectual Deficit in Real Estate Appraisal Qualifying Education

by Timothy Andersen, MAI The Appraiser’s Advocate

Excerpts: It is the premise of this essay that critical thinking, analytical rigor, integrative synthesis, and dialectical method are indispensable to the cultivation of competent real estate appraisers and the concomitant production of credible appraisals and non-misleading appraisal reports.

Yet, curiously, these conceptual pillars are either wholly absent or conspicuously marginalized within the current corpus of real estate appraisal qualifying education (QE). That QE in its present form is devoid of any formal engagement with these concepts suggests a foundational deficiency that imperils the credibility of both practice and pedagogy.

Appraisal is, at its core, a dialectical enterprise. The seller posits a value—often broker-influenced and aspirational. The buyer counters with skepticism and a desire for a discount. The broker inserts pecuniary incentives into the mix, motivated by the commission structure. The appraiser is thrust into this cauldron of competing value claims, charged with the burden of arbitrating truth. The appraiser must navigate opposing viewpoints, adjudicate conflicting data, and deliver a resolution rooted in evidence and reason.

In this sense, each appraisal is a dialectical negotiation, an intellectual endeavor wherein the appraiser becomes not merely a market technician but a philosophical mediator. Such work demands a skill set that far exceeds the filling of forms or the clicking of dropdown menus. It requires a mind trained in critical discernment, analytical rigor, synthetic coherence, and dialectical resolution, not merely in filling out a reporting form.

Yet, current appraisal QE and CE, and some of their providers, entrenched in their pedagogical inertia, fail to cultivate these competencies. They privilege mechanics over meaning, technique over thought. The consequence of such tactics is clear: we produce technicians, not scholars; form-fillers, not thinkers.

To read more, Click Here

My comments: This article explains what is missing in classes required for licensing. What you learn when first starting appraising is very, very important so you don’t have to try to learn it later.

Unfortunately after licensing started many new appraisers had not very good education. The appraisal professional associations, such as the Appraisal Institute (and predecessor associations) would not offer trainee classes. They only offered classes for getting designations. I had to refer them to the local “how to fill out a form” classes which were not very good.

The plan for appraisers to train appraisers did not work out well for many new appraisers. Appraisers lacked experience in teaching and did not want to take the time to train appraisers. Prior to licensing, most appraisers were staff appraisers at lenders who provided training. I was trained at an assessor’s office.

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Train the Trainer Class for GSEs New URAR and UAD 3.6

Appraisers’ Guide to the New URAR

In the May 2025 issue of Appraisal Today

By Dave Towne

Excerpts: Quality and Condition Ratings Updated and Appendix F-1

We learned that the Definitions for Q and C have been updated for more

clarity.

These will be in a new Appendix F-1, (available on the GSE web sites) which

appraisers should review BEFORE beginning to do UAD 3.6 URAR Reports!

I have to keep F-1 running in the background on my computer, and will do

that when teaching. F-1 is about 350 pages and shows most all entries that are required on the new reports.

Secondly, the Report will allow for better reporting of Q & C ratings for

various components. And additional property amenities can be selected from a list or drop-down.

In most cases, the Report will involve both office desktop and field tablet

inputting of data… which at this point appears to be more comprehensive than is currently required. Will the lenders recognize this fact, and correspondingly tell their lending client that the “appraisal Report” will cost more than what it might have in the past?

More importantly, will appraisers quit accepting low-ball fee assignments?

These are unknown at this point.

One more point, based on my review of the class material: this new process

is demanding a much more intensive and precise gathering of property detail than appraisers currently do.

It will take more time to do in the field than appraisers currently spend, and if

the appraiser transfers the field data back to their office desktop for completion, that will entail more time.

The ability to do complete inspections with a piece of paper on a clipboard is

going to end. A tablet or large smart phone is strongly recommended.

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January, 2026 issue emailed on Friday January 2, 2026 please email info@appraisaltoday.com, and we will send it to you. You can also hit the reply button. Be sure to include a comment requesting it. Or, call 510-865-8041
Available Now in Broad Production: UAD 3.6 and Forms Redesign

UAD 3.6 and Forms Redesign Broad Production Period is here.

The Uniform Appraisal Dataset (UAD) 3.6 and Forms Redesign Broad Production period starts today, January 26, 2026, with a mandate of November 2, 2026. All lenders are now permitted to submit UAD 3.6 appraisal reports to the Uniform Collateral Data Portal® (UCDP®). EMAIL DATED 1-26-26

The Uniform Appraisal Dataset (UAD) 3.6 and Forms Redesign Broad Production Period begins today, January 26, 2026. All lenders are now permitted to submit UAD 3.6 appraisal reports to the Uniform Collateral Data Portal® (UCDP®).

Submission of UAD 3.6 appraisal reports is not yet mandatory; however, lenders that have updated their systems and processes to support UAD 3.6 appraisal reports – including working with an appraisal software provider whose software has been verified for UAD 3.6 – are encouraged to begin integrating appraisal reports that use UAD 3.6 into their workflow. Gradually integrating UAD 3.6 appraisal reports will help lenders prepare for a full transition by the November 2, 2026 mandate, when all appraisal reports on loans sold to Freddie Mac or Fannie Mae must use UAD 3.6

WHAT THIS MEANS FOR APPRAISERS NOW: Appraisers will still be providing UAD 2.6 – the current forms. You will have time to learn UAD 3.6 appraisals. The demand for the UAD 2.6 will decline over time as lenders get set up for UAD 3.6.

To read the official original copy of what Freddie says, Click Here

Comments from Dave Towne on 1-27-26

Editor’s comment: I have been reading Dave’s emails for a long time. They are reliable.

What this means is the process to order appraisals, appraisal completion using software coded for the New URAR/UAD 3.6 data base, submittal back to the appraiser client, and eventual upload to the GSE’s can now happen. However, during this phase, the legacy appraisal forms and back end processing can also be used.

But the current reality is only 2.5 appraisal software vendors and few mortgage lenders are actually able to do this new process in what was expected to be full processing by now.

Two of the software vendors apparently have their software fully coded and approved to work with UAD 3.6. The third vendor has the ‘front end’ of their software working, but some of the other internal functions are not yet included which can somewhat impede the appraisers interaction. Two of the well-known vendors, and another newer vendor do not yet have their software fully approved by the GSE’s – which is required before the lender can allow the appraiser to use those. This is a real conundrum at present.

The process of updating the appraisal inspection and reporting beyond our current legacy actions sounds simple, “on paper”, as they say. The same applies to the lender back-end systems. In actual implementation it’s a daunting process to write software to do what the GSE’s expect. And from what I’ve been told, the software vendors apparently were not fully consulted early on.

There currently are SIX appraisal software vendors independently charged with designing their software to work with the UAD 3.6/MISMO system and functionality.

The timeline from the GSE’s shows the full cut-over date to the New URAR/UAD 3.6 to be Monday, Nov. 2, 2026. Per the GSE plan, this means:

Submit 3.6 Only – November 2, 2026 – Lenders must use UAD 3.6 for all new submissions on or after this date. Revisions allowed for previously submitted

Will this date ‘hold’ throughout the mortgage lending arena? I won’t speculate because I dropped my crystal ball two days ago when I got out of my vehicle and it shattered on the pavement! It depends on all vendor software operating correctly, and all lender back end processing systems up and running properly.

dtowne@fidalgo.net

www.towneappraisals.com

Mount Vernon, WA

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URAR: Expect The Unexpected

How UAD 3.6 affects lenders

Editor’s notes: Published by National Mortgage Professional. A good look at what lenders and appraisers need to know plus comments by an appraiser, Dan Figurski.

Broad production opens January 26, 2026, when all lenders may submit the new format alongside the legacy UAD 2.6. UAD 3.6 becomes mandatory for all new GSE appraisal submissions on November 2, 2026, and UAD 2.6 will fully retire in May 2027.

WHAT THIS MEANS FOR APPRAISERS NOW: Appraisers will still be providing UAD 2.6 – the current forms. No one knows when UAD 3.6 software will be ready for appraisers to use from all vendors and when lenders will be set up for it. Change required final date to 11-2-27 or later??

Key changes include the elimination of individual form numbers, expanded and standardized field sets, updated condition and quality definitions, and enhanced data structures that improve automation, quality control, and interoperability with loan origination systems. Lenders must ensure technology readiness, update systems to support UAD 3.6, and adjust quality control processes accordingly. FHA’s adoption is expected to begin in spring 2026, extending the new format beyond GSE‑conforming business.

Appraiser comments (interview):

NMP: Are there any unexpected changes that may surprise originators?

Figurski: One change in the redesigned URAR that might catch originators by surprise is how clearly property issues will be highlighted in the new reports.

In the past, if there was a concern with a property — say a safety hazard, a structural problem, or evidence of water damage — you’d have to really dig through the report to find it. On the new reports, those issues will be front and center at the beginning of the report. Originators will know very quickly whether there are problems that could influence the transaction or collateral risk.

NMP: What are the repercussions for those who are unprepared for implementation?

Figurski: The redesigned URAR will create a lot of efficiencies for lenders, originators, and servicers, but it’s a complete overhaul of how appraisal information has been delivered in the past. The structure looks different, the way information is presented is different, and there are more details and data fields than before. Companies that aren’t updating their workflows, training their teams, or working closely with their partners to prepare for these changes will struggle to keep pace.

On the other hand, those that are putting in effort now will be in a strong position to benefit.

NMP: What other positive features have you learned about?

Figurski: Something I thought was interesting was that the new report allows appraisers to confirm whether a property has broadband internet access. Considering how heavily our society relies on the internet — whether for streaming movies, working from home, running home security systems, or even supporting smart appliances — a strong internet connection is almost as important as having electricity or running water. By formally including it in the appraisal, the redesigned URAR acknowledges how central connectivity has become to both property value and livability.

To read more, Click Here

My comments: Definitely worth reading to see what will change for lenders. Also, appraiser comments on why the internet broadband data is provided.

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HOW TO USE THE NUMBERS BELOW. Appraisals are ordered after the loan application. These numbers tell you the future for the next few weeks. For more information on how they are compiled, Click Here.

Note: I publish a graph of this data every month in my paid monthly newsletter, Appraisal Today. For more information or get a FREE sample go to www.appraisaltoday.com/order Or call 510-865-8041, MTW, 7 AM to noon, Pacific time.

My comments: Rates are going up and down. We are all waiting for rates to drop lower in 2026.

Mortgage applications decreased 8.5 percent from one week earlier

WASHINGTON, D.C. (January 28, 2026) — Mortgage applications decreased 8.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January 23, 2026. This week’s results include an adjustment for the Martin Luther King Jr. Day federal holiday.

The Market Composite Index, a measure of mortgage loan application volume, decreased 8.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 16 percent compared with the previous week. The Refinance Index decreased 16 percent from the previous week and was 156 percent higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 0.4 percent from one week earlier. The unadjusted Purchase Index decreased 4 percent compared with the previous week and was 18 percent higher than the same week one year ago.

“Mortgage rates increased for the first time in a month, and as expected, refinance applications fell by 16 percent. The 30-year fixed rate was the highest in three weeks at 6.24 percent,” said MBA’s Joel Kan, Vice President and Deputy Chief Economist. “FHA refinance activity bucked the overall trend and increased, as FHA rates remained almost 20 basis points lower than conforming rates. With rates holding in the 6 percent range, the refinance market is likely to remain sensitive to week-to-week rate movements.”

Added Kan, “Purchase applications were 18 percent higher than last year’s pace, and the average loan size stayed at its highest level since September 2025, signaling that prospective homebuyers remain active at the start of 2026.”

The refinance share of mortgage activity decreased to 56.2 percent of total applications from 61.9 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 7.6 percent of total applications.

The FHA share of total applications increased to 18.6 percent from 15.9 percent the week prior. The VA share of total applications decreased to 14.7 percent from 16.2 percent the week prior. The USDA share of total applications increased to 0.5 percent from 0.4 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) increased to 6.24 percent from 6.16 percent, with points increasing to 0.55 from 0.54 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $832,750) decreased to 6.34 percent from 6.39 percent, with points increasing to 0.40 from 0.38 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.06 percent from 6.04 percent, with points increasing to 0.75 from 0.73 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 5.64 percent from 5.55 percent, with points decreasing to 0.61 from 0.65 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs increased to 5.56 percent from 5.42 percent, with points increasing to 0.80 from 0.62 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The survey covers U.S. closed-end residential mortgage applications originated through retail and consumer direct channels. The survey has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, thrifts, and credit unions. Base period and value for all indexes is March 16, 1990=100.

 

Ann O’Rourke, MAI, SRA, MBA

Appraiser and Publisher Appraisal Today

1826 Clement Ave. Suite 203 Alameda, CA 94501

Phone: 510-865-8041

Email: ann@appraisaltoday.com

Online: www.appraisaltoday.com

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Why AI Can’t Replace Appraisers

By on October 3, 2025   /   AI, appraisal business, UAD 3.6   /   Leave a comment
Tags: , ,

Newz: Why AI Can’t Replace Appraisers,
Value: Absolute or Relative?

October 3, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Weather Impact
  • Five Reasons AI Cannot Replace Real Estate Appraisers, By Timothy Andersen
  • Malibu (CA) Waterfront Home for $110,000,000
  • How Bureaucratic Overreach Turned Real Estate Appraisers into Scapegoats
  • September 2025 Housing Market Updates for Appraisers
  • Value: Relatively Absolute or Absolutely Relative?, By Brent Bowen
  • Mortgage applications decreased 12.7 percent from one week earlier

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Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news

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Five Reasons AI Cannot Replace Real Estate Appraisers

by Timothy Andersen

Excerpts:

QUESTION: When I got involved in real estate appraisal, nobody ever told me about AI, UAD 3.6, AVMs, and all the changes that would take place. I can’t keep up with these changes and the changes I will have to make to the way I appraise and report those appraisals. Please tell me there is some good news out there about the way I have chosen to make a living! Is there any such news?

RESPONSE: Traditionally, when there were questions of real property value, the party with the questions called a real property appraiser to answer them. Real estate appraisers are professionals who estimate the value of properties like homes or land. They are trained, licensed experts who visit properties, study local markets, and follow ethical rules to make fair valuations. Lately, artificial intelligence (AI) and computer models called Automated Valuation Models (AVMs) are helping estimate property values, thus possibly decreasing the demand for real estate appraisers.

From your question, you are asking if these innovations in AI are going to take your job. In all candor, AI is going to take some appraisal jobs. But the good news is that, with some upgrading on your part, that should not be a worry.

Reason 1

One reason you’ll get all the credit (or blame) is that humans exercise judgment, follow ethics, and accept responsibility. Algorithms cannot execute these since, to some extent, judgment, responsibility, etc. have an emotional component to them, rather than purely logic or reason. Remember, AI is a tool to help you. In so many ways it cannot replace you (nor was that its design).

Reason 2

One reason you’ll get all the credit (or blame) is that humans exercise judgment, follow ethics, and accept responsibility. Algorithms cannot execute these…

Reason 3

One reason it cannot replace you is simply because AI (i.e., AVMs) struggles with unique or complex houses, especially if those are rural properties…

Conclusion

At this point in the response, you rightly ask, “What does any of this have to do with me!?” That answer is essentially up to you….

To read more, Click Here

My comments: What AI means for your appraisals (and many jobs) can be scary. This article is understandable and comprehensive. Worth reading the details.

Read more!! →

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AI and Appraisals – the Future

By on August 1, 2025   /   AI, appraisal how to, liability, non lender appraisals, real estate market   /   1 Comment
Tags: , , , ,

Newz: Future of AI in Appraisals,
Comps in Today’s Market

August 1, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA ad: Code violations and expertise
  • The Future of AI in Real Estate Valuations: Understanding Tomorrow’s Appraisal Standards By Leland Trice
  • New York City’s Famous ‘Bubble House’ Hits the Market for the First Time in 50 Years With an Asking Price of $5.8 Million
  • The problem with comps in today’s housing market By Ryan Lundquist
  • Divorce Appraisal: A Guide for Real Estate Appraisers By Kevin Hecht
  • For sale signs multiply: Inventory hits 5-year high, price cuts surge What’s happening with markets all over the country?
  • Mortgage applications increased 0.8 percent from one week earlier

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The Future of AI in Real Estate Valuations: Understanding Tomorrow’s Appraisal Standards

By Leland Trice

Excerpts: The real estate valuation industry stands at a pivotal moment. After decades of relying on manual processes that are inefficient, error-prone, and costly, we’re witnessing a fundamental shift toward AI and technology enabled solutions that don’t replace human expertise but amplify them.

The future of real estate valuations will likely involve increasing integration of human expertise with artificial intelligence capabilities. This evolution isn’t about replacing professional judgment with automated systems it’s about creating hybrid approaches that leverage the strengths of both human analysis and machine processing.

Opteon’s new AI-powered quality control tool, built in collaboration with technology partner Jaro, illustrates this broader evolution across our industry.

It’s important to clarify a common misconception: AI-powered tools like Intara, don’t replace appraisers or QC functions. Instead, they enable Appraisers to focus on what they do best, expert analysis and decision-making, while automating repetitive, administrative and time-consuming tasks that add little analytical value.

The “magic” of AI is its ability to look holistically at a file. We have moved past the days of checklist data review and can now examine unstructured data and images simultaneously and in conjunction with discrete data points.

A critical factor in successful AI implementation is the flexibility to meet varying requirements. Intara demonstrates this principle by embedding lender-specific criteria into quality control processes, automatically identifying discrepancies, and ensuring consistency before reports reach final review.

To read more, Click Here

My comments: This article sometimes reads as a “marketing promotion”. But, worth reading to see how one company uses AI for appraisals and how it is used.

This article goes way beyond Chat GPT. It shows how custom AI applications can work for appraisals. The author, Leland Trice, is Managing Director at Opteon USA.

New York City’s Famous ‘Bubble House’ Hits the Market for the First Time in 50 Years With an Asking Price of $5.8 Million

Excerpts: 4 bedrooms, 5 baths, 4,763 sq.t. Townhouse

The distinctive bubbly residence has become a somewhat divisive hot spot in its Lenox Hill neighborhood, where it was built in 1969, with architect Maurice Medcalfe transforming a traditional brownstone into the eye-popping modernist masterpiece.

Medcalfe’s unique window design was intended to be “a sculptural interpretation of the classic bay window,” according to reports.

There is plenty to play with in the four-story interior, which boasts 4,736 square feet of space and includes four bedrooms, an office, and five bathrooms that are “all in need of renovation,” according to the listing.

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