How to Appraise Basements

By on February 20, 2026   /   AMCs, appraisal how to, UAD 3.6   /   Leave a comment
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Newz: Appraising Basements, AMCs,

Who is doing UAD 3.6 appraisals?

February 20, 2026

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

  • LIA AD: Limiting Liability to Third Parties
  • Basement Appraisals: Understanding Contributory Value (Updated for UAD 3.6)
  • Fascinating ‘Basement Home’ That Rises Just Inches Above the Ground Hits the Market for Less Than $160K
  • The AMCs: Coming Soon to a Lawsuit Near You
  • MY AD: The Cost Approach for Appraisers is not popular, by Tim Andersen, MAI
  • 26% of Appraisers Feel Ready: What UAD 3.6 Demand
  • Mortgage applications increased 2.8 percent from one week earlier
  • Have you received a UAD 3.6 order yet? Survey.
  • MBA: Mortgage applications increased 2.8 percent from one week earlier

Basement Issues and Values

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Basement Appraisals: Understanding Contributory Value (Updated for UAD 3.6)

Excerpts: While homeowners may ask, “Does a finished basement add value to my appraisal?” you know the answer is a bit more complicated. A basement may impact a residential property’s value, and as an appraiser, you’ll need to evaluate its significance.

While determining the contributory value of basements isn’t overly complex, it does pose challenges. To help you out, we’ll outline essential steps and provide tips for evaluating a basement’s contributory value.

Summary

Determining how a basement contributes to a residential property’s value requires an appraiser to identify the basement type, its level of finishing, and any common concerns, like signs of mold or structural issues. Following best practices is key. This includes separating the basement from the above-grade finished area, understanding the intended use of the space, and completing comprehensive market research. By doing so, you can evaluate the basement’s contributory value more accurately

Topics include:

Types of basements (partial list)

Cellars

Partial Basements

Walk-Up Basements

How Is the Basement Finished? Determining Levels

Know the Intended Use and Client Requirements

To read more, Click Here

My comments: The best analysis and advice on basements I have seen. Watch the 7 minute video on Understanding Q/C ratings (UAD 3.6) Where I work the ground does not freeze. In my Island city there is no cemetery as the ground water from San Francico Bay is very high. Basements need pumps to remove salt water. Basement walls are not used to support the home. Sometimes there are above ground basements, basements dug out of the ground, and many other types of basements. In steep hillside areas what is a “basement” can be controversial.

In Alameda, my city, native American burials, primarily from the Ohlone people, are heavily concentrated in former shellmounds (ancient cemeteries) throughout Alameda. Almost were removed many years ago, similar to other Bay area cities close to the Bay.

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Appraising with Limited Comps

By on January 23, 2026   /   AMCs, appraisal how to, forecast   /   Leave a comment
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Newz: Limited Comps, Freddie Mac: Property Data Collection, Avoiding ourt

January 23, 2026

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

  • LIA AD: Avoiding Court
  • Arriving at a Credible Appraisal When Comparable Sales Are Limited By Kevin Hecht
  • MAPPED: The Most Expensive Home Sales of 2025—From Palantir CEO’s Record-Breaking Ranch to Florida’s Priciest Mansion
  • MY AD: The AMC Conundrum in the Appraisal Business by Dave Towne
  • From Data to Value: How Mass Appraisal Delivers Fair Market Assessments
  • Freddie Mac. Insight Articles: Property Data Collection: An Overview
  • Housing Market Predictions for 2026
  • MBA: Mortgage applications increased 14.1 percent from one week earlier

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Arriving at a Credible Appraisal When Comparable Sales Are Limited
By Kevin Hecht

Excerpts: Limited sales activity is common in rural markets, custom-home neighborhoods, and low-turnover areas. When comps are few, the appraiser’s task is not to find perfect matches, but to show that the selected sales are the best available indicators of value and that all departures from ideal data are well supported.

In this article, we’ll answer questions like: How far back do appraisers look for comps? How far out geographically? What other tips and tricks do appraisers use to arrive at a credible appraisal, even when comps are limited? Additionally, we’ll share some insights from appraisers who answered our survey question, “What do you do when appraisal comps are few?”

When recent, proximate, and similar sales are unavailable, appraisers typically rely on some combination of the “Three D’s” to broaden their search for comparable property sales:

Dated – Search for older sales within the subject neighborhood.Distant – Search for similar sales farther away in competing neighborhoods.

Dissimilar – Search for dissimilar sales within the subject neighborhood by widening the parameters for improvements (GLA, age, features, etc.).

How Far Back Do Appraisers Look for Comps?

Time adjustments draw scrutiny. Most agency assignments expect appraisers to use the most recent closed sales available, typically within the prior 12 months when possible.1 When older sales are used, market conditions adjustments often become central to the analysis.

Time adjustments should be supported with clear data, applied consistently, and reconciled logically. Underwriters pay close attention to whether these adjustments reflect documented market behavior rather than assumptions, particularly in shifting markets.

We surveyed our appraisal community to find out, “What do you do when appraisal comps are few?” The following comments show how individual appraisers often put their own spin on the “Three D’s” when expanding the search for comparable sales:

“Time and distance. My preference is to go back farther in time within the same neighborhood and/or market area and make market condition adjustments. If that still doesn’t provide enough comps, I expand the market area, looking for more recent sales with similar characteristics to the subject property.”

“First consider a broader time frame. Market conditions adjustments are very supportable.”

“Expand search to other competitive neighborhoods. Next, go back in time.”

To read more, Click Here

My comments: I usually go back in time sometimes several years or longer if needed. Of course, I don’t do GSE appraisals with their restrictions…

 

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Fannie: Inspection and Reporting Tips UAD 3.6

By on October 31, 2025   /   adjustments, appraisal how to, real estate market, UAD 3.6   /   Leave a comment
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Newz: Fannie: Inspection and Reporting Tips UAD 3.6, Appraising Haunted Houses

October 31, 2025

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

  • LIA AD: Legal Request for Old Appraisal
  • Inspection and Reporting Tips for Appraiser Uniform Appraisal Dataset (UAD) Specification Issued by Fannie Mae and Freddie Mac
  • Penthouse One – 3 Story in Florida listed for $47,500,000
  • “No Name” Licenses, No Accountability: From Highways to Housing
  • Appraising Haunted Houses
  • Foolish Mortals or Bargain Buyers: 1 in 2 Americans Would Buy a ‘Haunted’ House for the Right Price
  • Mortgage applications increased 7.1 percent from one week earlier

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Uniform Appraisal Dataset (UAD) Specification Issued by Fannie Mae and Freddie Mac

Document Version 1.0

October 21, 2025

Excerpts: Navigating changes to the appraisal process can be complex – make the transition to the Uniform Appraisal Dataset (UAD) 3.6 easier with the new Inspection and Reporting Tips for Appraisers guide. This resource clarifies key differences between the new Uniform Residential Appraisal Report (URAR) and legacy UAD 2.6 forms, providing the information you need when researching or physically inspecting a property.

The purpose of this document is to assist the appraiser by highlighting the notable differences between UAD 3.6 and UAD 2.6, and direct the appraiser to appropriate section(s) in the Uniform Residential Appraisal Report (URAR) Reference Guide on the Fannie Mae and Freddie Mac UAD web pages.

The document offers tips for different sections within the URAR that may be helpful to an individual who is completing various aspects of an appraisal assignment.

• Inspection Tips: When physically inspecting the property, or

• Reporting Tips: When researching and completing the URAR, including new information that may require research from a website, the homeowner, or other source.

Items to Note:

• When there are no material differences between UAD 3.6 and UAD 2.6 with respect to

information collected, those URAR sections are omitted from this document. For example, the

information collected for “Assignment Information” is not included below because it’s very similar between UAD 3.6 and UAD 2.6.

• Review the URAR Reference Guide chapters 22 through 24 to understand the dynamic nature of the grids (Sales Comparison, Rental Comparison, GRM Comparison).

To access the Inspection and Reporting Tips for Appraisers resource, Click Here.

My comments: Worth reading. The only document I have read that compares UAD 2.6 (current form reports) and UAD 3.6 in specific fields. Uses tables that make it easier to understand. Refers to F-1, the document that contains information on fields. Hopefully, when you are doing UAD 3.6 Reports, your software will pull in the relevant sections from F-1.

I have written 6 articles on UAD 3.6 in my paid monthly newsletter, including a list of what has changed on each page of the sample SFR1 (Single Family) report. The November newsletter includes an update on software vendors and where to get demos. None have completed their UAD 3.6 software, including verification by GSEs.

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Condo Prices, up/down/?? for Appraisals

By on October 10, 2025   /   AMCs, appraisal how to, real estate market   /   Leave a comment
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Newz: NAR Calls Out Unregulated Middlemen (AMCs), Modular Construction?

October 10, 2025

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

  • LIA AD: Dealing with Unhappy Buyers as an Appraiser
  • Condo prices are obviously dropping, By Ryan Lundquist
  • Foreclosure Fixer-Uppers Ready for Their Next Chapter: 5 Abandoned Homes Offering a Bargain Deal to Buyers
  • The Modular Construction Revolution That Hasn’t Happened (Yet)

By Ivan Rupnik

  • NAR Calls Out Unregulated Middlemen: A Wake-Up Call for FHFA
  • When Appraisers Rally: Korea Sends the U.S. a Wake-Up Call
  • MBA Mortgage applications decreased 4.7 percent from one week earlier,

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Condo prices are obviously dropping

By Ryan Lundquist

Excerpts: So many price graphs right now look pretty flat, but this condo scatter graph shows definitive declines, right? This is stunning to see, but it’s also not a shocker since the condo market has been hit harder over the past couple of years. Keep in mind I’m showing the entire county, and not every single subdivision will have the exact trend.

WHAT’S HAPPENING WITH CONDOS?

Buyers have been turned off lately with condos, and so much of it has to do with HOA fees rising and affecting purchasing power (see paragraph below). There can also be issues with obtaining financing. Moreover, SB326 is a new balcony law in California in 2025, and that’s also something we want to keep watching. Yet, the declines began before 2025, so don’t blame SB326 alone.

LOSING PURCHASING POWER IS A BIG PROBLEM – SEE GRAPHIC BELOW

Check out the huge difference in purchasing power between the following two properties. The monthly payment is the same for a $350K condo with a $600 monthly HOA fee and a $450K detached home without an HOA fee. While there is some advantage in having the HOA cover exterior maintenance or even having a gym on site, buyers are looking at the math, and the higher fee has been a roadblock for condos.

SUPPLY HAS GROWN FASTER WITH CONDOS

Condo supply has been growing at a faster pace all year than the detached market in Sacramento County. This is a good reminder that not all parts of the market are experiencing the same trend (key point). No wonder why prices have gone down at a quicker rate for condos, right?

To read more, Click Here

My comments: What’s happening in your market??

Over my 40 years appraising in my local market, condo markets are almost always different than the market for detached homes.

Many condos in my city are conversions of apartments built prior to 1970. Today, there are new condos are being built here and all over the Bay Area due to very high land prices. Across the street from my office are many 3-5 story new condos with a few attached townhomes. They are sorta boring and look the same. A marina is being converted to residential mostly. I had my business there for over 30 years and had to move as my office building was destroyed in the first year of Covid.

Read more!! →

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Appraisal Clipboards and UAD 3.6

By on September 19, 2025   /   adjustments, appraisal business, appraisal how to, New URAR, UAD 3.6   /   Leave a comment
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Newz: Concessions, Clipboards in Appraisals?

September 19, 2025

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

    • LIA AD: Protecting My Appraisal Report
    • Robots in Surgery, Clipboards in Appraisals: A Tale of Two Professions
    • Custom Barndominium ‘Like No Other’ With Hobby Farm and Room for Helipad Hits the Market for $12.5 Million
    • Concessions: Sellers are struggling to listen to the market by Ryan Lundquist
    • Do Nearby Home Sales Affect My Home’s Value? By Tom Horn
    • The Short-Term Rental Dilemma by JoAnn Apostol

    • Mortgage applications increased 29.7 percent from  one week earlier

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Dear Clipboard and Measuring Wheel – A Walk Down Memory Lane

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Robots in Surgery, Clipboards in Appraisals:
A Tale of Two Professions

By Tony Pistilli

September 15, 2025

Excerpts: In the distant past, a doctor could build a career practicing medicine in much the same way for decades. But today, with the rapid pace of medical advancement, it means doctors who refuse to adopt new technologies either retire early, find their practices so limited that they cannot effectively compete or fade away into irrelevance.

The technological toolbox available to doctors today is full and growing. Consider just a few of these examples.

Robots allow doctors to perform minimally invasive procedures with greater precision, fewer complications, and faster recovery times. Surgeons control the robot’s every movement, combining human judgment with precision accuracy.

Doctors vs. Real Estate Appraisers

Of course there had to be a correlation to appraisers!  In summary, doctors have largely embraced technology, reshaping their profession and improving outcomes for millions of people around the world.

Contrast that with real estate appraisers.

While doctors are saving lives with robotic tools, appraisers are often still clinging to their clipboards, tape measures and manual data entry. While physicians have adopted telemedicine to expand their reach, many appraisers have resisted bifurcation that could streamline valuation processes and bring more work and ultimately more revenue.

To read more, Click Here

My comments: Interesting analysis. A few years ago, I had major surgery where robotics were used. I was worried, but when I research robotics I found out that they can work very well. And that the robots were not doing the surgery! My surgeon determined what the robots did by the surgeon manipulating the surgical instruments in an external device to do the surgery.

UAD 3.6 is coming. Using a tablet app in the field to collect data can really help. What if you don’t want to use an app and want to use a clipboard? I spoke with a software vendor recently who will have paper check lists of what data and photos are needed when using a clipboard.

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Paired Sales Analysis

By on September 12, 2025   /   adjustments, appraisal, appraisal business, appraisal forms, appraisal how to, UAD 3.6   /   Leave a comment
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Newz: Paired Sales Analysis, The Last Appraiser,
24 Hour Turn Times?

September 12, 2025

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

  • LIA AD: Why do Claims get Settled?
  • Paired Sales Analysis: Tips and Tools for Appraisers
  • Home on rare stretch of California’s Lost Coast hits market for $11M in Ferndale, CA Some Assembly Required
  • Combining Tools for Appraisals By Brent Bowen
  • The 24-Hour Appraisal Diet: Slim on Time, Light on Credibility
  • A Review of MEIN COMP: The Last Appraiser by Desiree Mehbod
  • Mortgage applications decreased 1.2 percent from one week earlier

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Tools To Support Appraisal Adjustments

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Paired Sales Analysis: Tips and Tools for Appraisers

By Kevin Hecht

Excerpts: As a professional real estate appraiser, you know that paired sales analysis is a reliable and popular method for determining the value of specific property features and providing market-based evidence to support appraisal adjustments.

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.

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)

Importance

For property appraisers, paired sales analysis is an essential tool because it helps ensure that appraisal adjustments are supported by quantitative data. Rather than relying on cost estimates or subjective opinions, you can use actual sales data to support your value conclusions. This evidence strengthens your appraisal’s defensibility and helps you comply with USPAP.

Additional Topics

  • Step-by-Step Methodology of a Paired Sales Analysis
  • Paired Sales Analysis Tips and Best Practices

My comments: Paired sales has been used for decades by appraisers. Now, statistical analysis including graphs is available plus software that can determine adjustments. In the 8/25 issue of this newsletter, an appraiser survey of appraisal adjustments said that paired sales was the number one adjustment method used by appraisers.

I use paired sales for unusual adjustments, such as discussed above. For example, for many years I lived in waterfront homes, which is not unusual in my city. One of my homes was in a small development of similar homes built in the 1940s. Matched paired sales was very easy. Another non tract home built in the 1940s did not have similar homes nearby and paired sales did not work very well there.

To read more, Click Here

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Appraisal Regulator Chaos

By on September 5, 2025   /   appraisal, Appraisal Foundation, appraisal how to, appraisal regulations, Appraisal Subcomitee, climate risk, Economic analysis, HOME INSURANCE, liability, real estate market, state appraiser regulators   /   Leave a comment
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Newz: Appraisal Regulator Chaos , Cat and Raccoon Damages, Wildfire Risks

September 5, 2025

What’s in This Newsletter (In Order, Scroll Down)
NOTE: Scroll down to see Appraisal Regulator Chaos

  • LIA AD: Legal Request for Old Appraisal
  • The Kitty Litter Duplex: An Appraisal I Wish to Not Remember
  • $300K Maryland Home Is Overrun by Feral Cats and Raccoons
  • The Full Measure August 2025: Navigating Rates, Inventory, and Affordability
  • Appraisal Regulatory Chaos
  • The Town With No Bank: How Rural America Lost Its Mortgage Lifeline By Dallas T. Kiedrowski, MNAA
  • New Cotality Wildfire Risk Report finds more than 2.6 million homes are exposed to moderate or greater wildfire risk
  • Mortgage applications decreased 1.2 percent from one week earlier
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The Kitty Litter Duplex: An Appraisal I Wish to Not Remember

Excerpts: How one property’s furballs left an unforgettable impression on an apartment and an appraiser

Introduction

In the world of real estate, surprises abound. Industry professionals, especially appraisers, all expect the unexpected, but even the most seasoned professionals can stumble across situations that test the limits of their experience, composure, and their judgement. There are stories of haunted houses, collapsing ceilings, and outlandish tenant actions and decorative choices (Live, Laugh, Love), but the tale of the cat-soiled duplex stands out for its sheer yuck-factor. This is the story of what should be a routine property appraisal, which became cemented in my experience stories, due to its unfathomability and coated in an unmistakable, noxious layer of feline mischief.

The Setting: An Unimposing Duplex with a Dirty Little Secret…

The Appraisal Appointment: An Unforgettable First Impression

…I could only see the flooring in the opening and a few other spots around the living room from about a foot outside the threshold, the rest of the floor was completely caked with cat poop. The walls, ceiling, and windows were all enveloped by heavy spider webs in a variety of states, while some were fresh looking, others clearly blackened from a long life filled with dust, dirt, fur, and of course fecal matter. Also, you could see multiple patches of orange mold scattered throughout the walls and ceiling. I quickly replied I would not be going in there, because it was a danger to my health and safety, which somehow surprised her….

Financial and Health Implications: When Cleanliness Becomes a Value Killer

Hygiene, general maintenance, and property values parallel each other. This may be why we have condition codes for our appraisals. Just saying…. I made sure to thoroughly explain the situation and how the value was determined in the report. I did not want this rolling back downhill and getting me. Luckily, a very gracious Fresno Construction, was able to give me a quote very quickly, which came just over $100,000 for an estimate to redo the unit in its entirety.

Conclusion

The Kitty Litter Unit stands as a testament to both the resilience of a property and the unpredictability investors face. Especially in this case, since it was for an estate of a deceased former owner.

To read more, Click Here

My comments: I appraised a house for a relocation company – one story with 3 bedrooms. There were cats on every surface above the floor, such as dressers, – all staring at me of course. In the rear of the home was a very large cat enclosure. They were rescue cats, temporarily at the home. I did not ask the owner where the cats would go when she relocated – back to the shelter or with go with her.  I will never forget about all those cat eyes staring at me!

I had another relocation appraisal where the male cat had sprayed urine along several walls in the living room. I told the relocation company to replace the drywall.

Of course, I could fill up a book with dog stories. Such as two Dobermans that broke down the door of a trailer to get to me. I somehow made it to my car and I will never forget it. Or the small dogs who bit my ankles as I was trying to get through the front door (home was owned by an appraiser I knew). For both appraisals, I told my lender client to get another appraiser.

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Appraisal Adjustments

By on August 29, 2025   /   adjustments, appraisal how to, FHA, liability, New URAR, UAD, UAD 3.6, USPAP   /   Leave a comment
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Newz: Appraisal Adjustments, How Freddie and Fannie Inflated Home Prices, FHA to Adopt UAD 3.6

August 29, 2025

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

  • LIA AD Navigating Value Revisions in Appraisals
  • Appraisal Adjustments: Types, Methods, and Cheat Sheet Appraisal By Kevin Hecht
  • Inside Artificial Heart Inventor’s $4.8 Million Midcentury Modern Salt Lake City Utah Home
  • Inflated Prices, Taxed to Death, by Jeremy Bagott
  • Can the direction a home faces affect its value? By Ryan Lundquist
  • The Competence to Perform an Assignment, by Timothy C. Andersen, MAI
  • FHA to adopt UAD 3.6
  • MBA: Mortgage applications decreased 0.5 percent from one week earlier

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Time Adjustment Changes for Appraisers

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Appraisal Adjustments: Types, Methods, and Cheat Sheet Appraisal By Kevin Hecht

Excerpts:

Types of Appraisal Adjustments

Appraisal adjustments can take several forms, depending on the property characteristics being compared. Each type of adjustment addresses a different element that may influence value. Below are descriptions of common adjustment categories and their uses, followed by a “cheat sheet” chart with examples.

  • Qualitative Adjustments
  • Quantitative Adjustments
  • Transactional Adjustments
  • Market Conditions Adjustments
  • Property Adjustments
  • Locational Adjustments

Common Methods for Making Appraisal Adjustments

A long list, from matched paired sales to Cost Analysis

Appraiser Survey: What’s Your Go-To Method for Adjustments?

Paired sales/matched pair analysis (Most popular answer!)

“I typically cover rural areas where sales are scarce and there is not enough data for meaningful statistical analysis to be performed. Due to this, paired sales analysis is the most reasonable and defensible analysis position available.”

“I use linear regression to understand market changes and to calculate any necessary market change adjustments.”

“Depends on what item is being adjusted. If it is site or GLA, it is usually a percentage of the per acre or per square foot sales price. Other items are usually paired sales analysis or consideration for depreciated cost.”

To read more, Click Here

My comments: Comprehensive lists and interesting appraiser comments. I quit doing grid dollar adjustments many years ago. A person from our state regulator, speaking at a local appraisal meeting, said they would require support for all adjustments. I started by doing Plus and Minus grid adjustments and then went to “total property comparison” with a value. I do a qualitative analysis comparing the comps.

The only supported dollar adjustments I make are for market conditions and high dollar features such as a fantastic view of the Golden Gate Bridge from very high up a hill.

Inside Artificial Heart Inventor’s $4.8 Million Midcentury Modern Salt Lake City Utah Home

Excerpts: 4 bedrooms, 4.5 baths, 5,447 sq.ft., 0.55 acre lot, built in 1957

The mastermind behind the one-of-a-kind estate was none other than Swiss architect Eduard Dreier, who brought Bauhaus principles to the modernist movements of Utah and Nevada.

Lovingly restored and awarded the Utah Heritage Award for Restoration and Renovation, this 5, 447 sq ft architectural gem blends timeless Dreier elements-exposed steel beams, walls of glass and cantilevered roof line, granite rock walls-with warm modern luxury. The 1,110 sq ft glass-and-steel attached guest house, designed by Dreier protge Brent Groesbeck in 2016, floats above the main home, expanding living where entertaining is elevated to an art form.

To read more, Click Here

To see the listing with 43 photos and a video tour, Click Here

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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
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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.

To read the listing with 13 photos Click Here

Read more!! →

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Top 3 Appraiser Mistakes

By on July 25, 2025   /   ADUs, appraisal how to, bias, liability   /   Leave a comment
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Newz: Top 3 Appraiser Mistakes, Bias Lawsuit Dismissed, ADUs

July 25, 2025

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

  • LIA ad: Why Do Claims Get Settled?
  • Top 3 Mistakes Appraisers Make in Their Appraisal Reports By Bryan Reynolds
  • Founding Father John Hancock’s Boston Home Is on the Market for First Time in Half a Century — More Than 250 Years After It Was Built
  • Appraiser Vindicated: Lanham Discrimination Lawsuit Dismissed in Maryland
  • A Complete Guide to Geocodes
  • Bipartisan legislation would make it easier to finance accessory dwelling units
  • Mortgage applications increased 0.8 percent from one week earlier

Appraiser Mistakes

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Top 3 Mistakes Appraisers Make in Their Appraisal Reports

By Bryan Reynolds

Excerpts: After doing more than 2,000 appraisal reviews over the years, Bryan and his team have seen these same errors crop up again and again. Know them and avoid them.

I was an investigator for the state of Tennessee for many years. These days, I primarily help appraisers who find themselves in trouble. Sometimes we’re successful in resolving the issue entirely, or at least reducing the impact. Other times, it becomes a learning moment — we recognize mistakes, take responsibility, and strive to do better.

Mistake #1: Omitting a key statement about an extraordinary assumption or hypothetical condition

Appraisers can gain some leeway with the right scope of work, and by properly using extraordinary assumptions and hypothetical conditions. But you must meet minimum reporting requirements.

Mistake #2: Not summarizing the results of your analysis of the subject property’s prior sales

Saying “the subject sold last year for $150,000” is not analysis. That’s just a statement of fact. What USPAP requires is a summary of your analysis. You’ve got to explain what that sale means in the context of your current appraisal, not just list the data point.

Mistake #3: Including comps that aren’t really comparable

The 1004 form, or the Uniform Residential Appraisal Report form, is what most appraisers use. This is a form many of you are very familiar with. At the top of page two, it says:

“There are ___ comparable properties currently offered for sale in the subject’s neighborhood, ranging from ___ to ___.”

“There are ___ comparable sales in the subject’s neighborhood within the past 12 months, ranging from ___ to ___.”

Now, if you truly are in an area where all the listings and sales in a neighborhood are in a competitive state for the same properties, then I guess you’d fill that in accordingly. But how often does that happen? I mean, are the two-bedroom homes competing for the same buyers as the four-bedroom homes?

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My comments: Definitely worth reading! I would have never thought these 3 were the most common mistakes.

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Founding Father John Hancock’s Boston Home Is on the Market for First Time in Half a Century — More Than 250 Years After It Was Built

Excerpts: Used as offices now, 7,622 sq.ft., 2,178 sq.ft. lot, Originally built in 1660s

The iconic dwelling, which is known as the Ebenezer Hancock House in honor of John’s younger brother who used it while serving as the deputy paymaster of the Continental Army, is thought to have been built in 1767.

According to the listing, which is held by Dave Killen of LandVest, the building is the “last extant property associated with the founding father in Boston” and stands as a living time capsule, having been meticulously maintained by its current owners over the last five decades.

An asking price for the property has not been released, but the structure was most recently valued at $1.65 million by city officials. Given its historical significance, the building could well sell for much more.

The original structure dates to the 1660’s, when the site was owned and occupied by William Courser, Boston’s first Town Crier. In 1737, the property was owned by James Davenport, the brother-in-law of Benjamin Franklin.

To read more and see many interesting photos, Click Here

My comments: Our country’s 250th anniversary is coming. This is a look into when we started.

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