August 30, 2024
What’s in This Newsletter (In Order, Scroll Down)
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New AMC client. They’ve asked me to provide a list of other AMCs I work with and how long I’ve been working with them before they accept me. Is this a common requirement?
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AI Appraisals: Embracing the Future Appraisal
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5 Enormous Mansions, With Wildly Different Architectural Styles—Priced at Under a Million Bucks
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Is appraisal accuracy measured by contract price?
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Redfin Reports 6 of Every 7 People With Mortgages Have an Interest Rate Below 6%
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110 Nightmarish Home Inspector Scenarios
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Mortgage applications increased 0.5 percent from one week earlier
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Appraisal Business Tips
Humor for Appraisers
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AI Appraisals: Embracing the Future Appraisal
By Jim Amorin
Excerpts:
Image Recognition
AI can analyze property images to identify features and property conditions, and even estimate dimensions with remarkable accuracy. This technology accelerates the inspection process, allowing appraisers to focus their expertise on more nuanced aspects of the valuation where their experience and judgement are most critical.
While some may worry about image recognition taking away from the appraisers’ skills, it is more useful to see it as a supplement to your own eyes. The visioning capabilities (image recognition) of AI can reinforce your own observations. Using the generative capabilities of a large language model such as ChatGPT coupled with the visioning tools, some of the narrative description of the property can be streamlined for the appraiser.
Enhanced Reports
Another appraiser leveraged AI tools to generate detailed market analysis reports. These reports included data visualizations and trend analysis that provided clients with a deeper understanding of the market, ultimately enhancing the appraiser’s service quality and client satisfaction.
Summary
AI is not a threat to appraisers but a powerful ally. By leveraging AI’s capabilities, appraisers can enhance their efficiency, accuracy, and overall service quality. The unique judgment, expertise, and contextual understanding that appraisers bring to their work are irreplaceable. Embracing AI as a tool will ensure that appraisers continue to play a vital role in the real estate industry, delivering unparalleled value to clients and shaping the future of real estate appraising.
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My comments: Amorin’s new book is very well written and understandable. Craig Gilbert wrote an extensive review of the book “The Generative Shift: A Thorough Examination of AI” and interviewed Amorin, in the July, 2024 issue of Appraisal Today.
I have not used AI for my appraisals but follow its use in other applications, such as medical. For example, I have had many mammograms over the years. A recent study found that an artificial intelligence system has an accuracy rate of about 90 percent, compared to an overall average of 80 percent by radiologists. “Notably, when radiologists used this tool as a second reader, their performance improved,” says Dr. Moy. “So we want to reach that sweet spot where we use both.”
A friend had dense breasts. Her mammograms never detected the small tumors scattered through both breasts before her breast removal surgery, where they found them. Bad News
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