Crazy Appraiser Stories

Newz: Crazy Appraiser Stories,
How to Do Regression, Resolutions

CHANGE YOUR TEMPLATES!!

January 2, 2026

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

  • LIA AD: Borrower Wants Answers Appraiser Can’t Give
  • Off the Rails: Crazy Appraiser Stories
  • Inside Pacific Palisades’ Most Expensive Home—a $39.5 Million Hilltop Marvel
  • How to Build a Regression Model in Excel: A Guide for Real Estate Appraisers by Jim Amorin
  • Why Resolve anything? By George Dell, MAI
  • MBA, Fannie Mae see 2027 (and 2026) housing markets very differently
  • MBA STATS – None This Week

Crazy Appraiser Stories!!

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Off the Rails: Crazy Appraiser Stories

You’ve all got stories of crazy inspections: eccentric collections, mysterious apparitions, and unorthodox decor. Here are a few we found to be the most Buzzworthy.

Excerpts: Reflections

My assignment: a log home in the middle of the city. I go into the owner’s suite, and right in the middle of the room is this built-in whirlpool tub up on a pedestal with velvet steps leading up to it. The whole ceiling is just mirrors. I think, How am I going to deal with this? The owner is so proud of this custom owner’s suite they’ve built.

It isn’t something that the normal market would want, so it has a certain…market impact, let’s say. I handled it by cost to cure.

—Jared Preisler

Let That Sink In

When I was an appraiser trainee, I was tagging along with my supervisor on a packed day of about eight appointments. It was mid-January in upstate New York. Trust me when I tell you it was COLD. First appointment, 9am: we finished walking through the inside of the home and headed outside. I began walking around the back yard (tall winter boots on, of course) when I suddenly realized I was about three feet lower than I had been moments ago. I looked down to see brown, icy water pooling around my feet. I struggled to comprehend what was happening as my boots became completely submerged. Seconds later, the homeowner cracked the door open just wide enough to shout, “Watch out for the koi pond! It’s probably covered in snow!”

I spent the rest of the day wearing socks I borrowed from a homeowner and plastic bags stuffed into my boots, while a swampy smell permeated my boss’s car. Lesson learned.

—KWAppraisalGroup

To read more, Click Here


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Q4 2025 Fannie Mae Appraiser Update – AMC Risk, UAD 3.6

Newz: 12 Days of Appraiser Christmas,
Q4 2025 Fannie Mae Appraiser Update –AMC Risk, UAD 3.6

December 19, 2025

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

  • LIA AD: A Family Feud and Intended Use
  • Q4 2025 Fannie Mae Appraiser Update – AMC risk, UAD 3.6
  • 12 Days of Appraiser Christmas
  • Santa’s House is Back on Zillow with a Bold New Holiday Look
  • Highest and Best—and the Highest Value By Richard Hagar
  • AQB Proposed Changes in New Appraiser Requirements
  • MBA: Mortgage applications decreased 3.8 percent from one week earlier
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Q4 2025 Fannie Mae Appraiser Update

As the year wraps up, we’re focused on what matters most to your success: clarity, consistency, and confidence in every appraisal. This edition gives you practical insights to stay ahead:

  • Several deep-dive articles on Uniform Appraisal Dataset (UAD) 3.6, focused on condition/quality ratings, the inspection component of Scope of Work, disaster mitigation, energy efficiency, and training and resources;
  • Why time adjustments matter—and how to apply them effectively; and
  • Our approach to managing Appraiser Management Company (AMC) risk for stronger compliance and reliability. Excerpts: In Jul. 2025, Fannie Mae began sending letters to AMCs detailing appraisal quality issues identified through Fannie Mae loan quality reviews completed in 2024. Each letter contains a comprehensive list of the issues identified for appraisals associated with that AMC.

To read more, Click Here

My comments: Worth reading. First time I have ever seen comments on AMCs. Good to see that GSEs are looking at AMCs.

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12 Days of Appraiser Christmas

NOTE on video: Click on image and it opens in Youtube.

Very funny!! 3.5 minute video

Sample appraisal requests:

On the fourth day of Christmas my best client sent to me falling

Shacks, three field reviews, two double wides, and a drive by single family.

On the tenth day of Christmas, my best client sent to me 10 tax appeals and eight Mega Mansions.

Singer in this video is comedian David Cassel as the Ukulele Bandito http://www.theukulelebandito.com / (he is not a Portland appraiser, but he is funny)

Many thanks to Gary F. Kristensen, SRA, ASA, AGA at A Quality Appraisals in Portland, Oregon.

My comment: I love this FUN video ;>

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Few comps in 2026 for Appraisers

Newz: Few comps in 2026, NAR Revises Nonmember Broker/Appraiser Access Policy

December 12, 2025

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

  • LIA AD: Can’t Certify the Work
  • The problem with comps in 2026 (and the good news)
  • Gravity-Defying Colorado Mansion Designed by a Rocket Scientist Hits the Market for $2.7 Million
  • Creating a Histogram in Excel: A Guide for Appraisers
  • My ad: The AMC Conundrum in the Appraisal Business, By Dave Towne
  • NAR Revises Nonmember Broker/Appraiser Access Policy Language
  • MBA Mortgage applications increased 4.8 percent from one week earlier

Appraisers and Local Market Analysis

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The problem with comps in 2026 (and the good news)

By Ryan Lundquist

Excerpts: We have a problem with comps in real estate. There just aren’t that many, and it’s made it much more challenging to figure out value. Yet, this could get a little better in 2026.

WE’VE HAD A COMP PROBLEM FOR THREE YEARS:

We’ve been missing about 30% of the normal number of sales. This is true both locally and nationally. This chart from Calculated Risk shows the gravity of the situation as we’ve been flirting with historically low volume for three years now. And what this means is we’ve had 30% less comps to choose from. Yikes!! This is exactly why it’s been challenging to value properties.

THE BAD NEWS

We’re still poised to have historically low volume until there is a sharper change with affordability. The housing market simply feels stuck, and there isn’t a mechanism to quickly increase the number of buyers. In other words, it’s not going to be a market with robust volume for a long time since it’s going to take years to get buyers and sellers back. Yet, if the projection is correct about next year, it’s going to be something positive to get even a little more volume back. This isn’t standing ovation news, but maybe a golf clap is in order. And for my real estate friends, this is a solid reminder to stay focused.

SOMEONE WAS MAD AT ME FOR USING OLD COMPS

I had someone angry with me recently that I used much older sales as comps in a private appraisal. I tried to explain my rationale, but the person wasn’t willing to listen. Here’s the deal though. If there aren’t any recent comps, then we have two choices. Use older sales and adjust for how the market has changed, or go out further into other markets for more recent sales (doable, but not always ideal). In real estate textbooks, this issue doesn’t come up since there are always three model match sales over the past 90 days, but the real world is different. The truth is valuations today look a bit messy since we don’t have the luxury of ample recent sales. We simply have to do the best with what we have. Remember, when the market changes, how we do things sometimes has to change also.

To read more, Click Here

My comments: Some interesting appraiser comments. This is a hot topic for appraisers now. Definitely a problem in most areas. What is your market like?

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Appraising with Inventory Shortages and Surpluses

Newz: UAD Quality Ratings,

Appraising with Inventory Shortages and Surpluses

December 5, 2025

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

  • LIA AD: When a Property Owner Wants to Do the Appraiser’s Job
  • Understanding UAD Quality Ratings (Updated for UAD 3.6 and the New URAR)
  • Gothic-Inspired ‘Fairytale Castle’ in Miami’s Exclusive Coconut Grove Michigan Hits the Market for $24 Million
  • Navigating the Challenges of Inventory Shortages and Surpluses in Real Estate: Insights from a Chief Appraiser at a National AMC By Jim Jenkins, Chief Appraiser
  • What Is a Scatter Chart Analysis in Appraisal?
  • 53% of U.S. homes lost value in the past year, the most since 2012 – Zillow
  • MBA:  Mortgage applications decreased 1.4 percent from one week earlier

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Understanding UAD Quality Ratings (Updated for UAD 3.6 and the New URAR)

Excerpts: Quality ratings are one of the most familiar parts of UAD, but the way appraisers report them has changed under UAD 3.6 and the new dynamic Uniform Residential Appraisal Report (URAR). While the Q1–Q6 scale remains in place, the way you apply, support, and reconcile quality is more structured and data-driven than in the legacy forms.

What “Quality” Means in UAD 3.6

In UAD 3.6, quality represents the materials, craftsmanship, and construction standards of a dwelling. The familiar Q1 through Q6 framework still applies, but the workflow is different:

Quality is no longer a single, form-level checkbox.

You now provide quality ratings in multiple places:

  • Exterior Quality Rating (Dwelling Exterior section)
  • Interior Quality Rating (Unit Interior section)
  • Kitchen and Bathroom Detail tables
  • Overall Quality (reconciled in Section 15)
  • The “overall” rating is informed by the component-level data you report in these earlier sections.

Other topics include:

  • What Does UAD Stand For?
  • What Are the Quality of Construction Ratings?
  • Breaking Down the UAD Quality Ratings (Q1–Q6)
  • How Quality Is Applied in the New URAR
  • Tips for Applying Quality Ratings Credibly

Final Thoughts

Quality ratings remain an important part of UAD, but the approach is more precise now. UAD 3.6 pushes appraisers to rely on observable details rather than broad descriptions or market norms. When you follow the definitions, support your ratings with the structured data, and reconcile logically, the quality rating becomes a clear and defensible part of your analysis.

To read more, Click Here

My comments: Comprehensive and well written. Worth reading.

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Appraisers – Disclose When You Did Not Do the Inspection 

Newz: 24 Hour Appraisal, Disclose When Some One Else Did the Inspection

November 7, 2025

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

  • LIA AD: When a Property Owner Wants to Do the Appraiser’s Job
  • The Hazards of Signing a URAR When Another Person Conducts the Inspection
  • Honolulu Diamond Head Estate for $34,000,000
  • The 24-Hour Appraisal Funded by Appraisers
  • How Policy, Data, and Technology Are Reshaping Lending and Valuation: MBA 2025 Recap
  • MBA: Mortgage applications decreased 1.9 percent from one week earlier

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The Hazards of Signing a URAR When Another Person Conducts the Inspection

By Dan Bradley

Excerpts: When using the Uniform Residential Appraisal Report (URAR) to report the results of an appraisal, the appraiser’s signature on the report is not merely a formality, it is a certification. By affixing his or her signature, the appraiser is certifying to (among other things) having personally made an interior and exterior inspection of the subject property.

Clients, AMCs, and state regulatory agencies are reporting that appraisers are increasingly delegating their inspection responsibilities to others yet are signing the URAR certifying they made a personal inspection.

What are the risks if an appraiser signs a URAR report certifying an interior and exterior inspection that was actually conducted by someone else?

Conclusion

Signing a URAR appraisal report that states the appraiser personally inspected the property, when in fact another party performed the inspection, is a serious liability risk. USPAP permits an appraiser to value a property that they did not make an interior and exterior inspection.

However, USPAP does not allow an appraiser to communicate a misleading report. A report that falsely indicates that an individual made an inspection of a property when in fact they did not is misleading, and could result in disciplinary action, civil liability, or other negative consequences.

To read more, Click Here

My comments: Good reminder, especially with the use by the GSEs of alternative valuation methods. Of course, you know nothing about the qualifications of the person doing the inspection. The article did not specifically address UAD 3.6, but I assume it would have the same certification section and requirements.

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Bias in Appraisals. What Does It Mean?

Newz: Tariffs Effects on Home Building,
The Cupola and Its Cooling Comeback

October 17, 2025

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

  • LIA AD: Unreasonable Subpoena Request
  • California home built around giant boulder lists for $2 million
  • What’s That Box on the Roof? The Cupola and Its Cooling Comeback
  • Trump’s Tariffs on Lumber and Cabinetry Kick In, Hitting Homebuilding and Renovation
  • The Appraiser’s Guide to Evaluating Home Value Before You Buy
  • Mortgage applications decreased 1.8 percent from one week earlier

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What does “bias” in appraisal really mean?

Hal Humphreys

and Peter Christensen Video

Excerpts: What constitutes “bias” in appraisal isn’t always what you expect, according to an attorney who handles cases involving appraisers.

Now let’s zoom in on bias. This topic does NOT inspire feelings of neutrality in the appraisal community. That non-neutrality comes out (a bit explosively) in comments threads and appraiser forums, and sometimes even in the classroom. I’ve sat in on several of Peter Christensen’s in-person classes on bias and fair housing law, and invariably somebody in class pushes back. Sometimes the air gets pretty hot and hostile. But Peter always handles the pushback with calm and aplomb. He hears folks out, responds respectfully, and steers the conversation back to his thesis — that bias exists, and it can take forms that we don’t necessarily expect.

In a brief interview I did with him (see the video below), he tells a story about a case he handled, in which an appraiser’s report was found to exhibit bias to a homeowner whose political views he loathed. Peter tells this story in his class, and it always surprises people, because they’ve seen this divide in their own lives and can imagine something like this actually happening.

I thought I knew what bias looked like, but I’ve begun to realize that it can creep in when we’re least expecting it. —Hal Humphreys

To read more and watch the video, Click Here

My comment: Interesting analysis. Very good video. Worth watching the video and reading the text.

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Why AI Can’t Replace Appraisers

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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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.

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Paired Sales Analysis

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

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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What AI Means For Appraisers

Newz: AI and Appraisers, FHA Handbook Updated,
History of Residential Appraisal Regulations

August 22, 2025

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

  • LIA AD: Should I consider this an actual claim?
  • 7.5 Things Appraisers Can Do That Artificial Intelligence Cannot, By Mark Buhler
  • Home Made Entirely Out of Shipping Containers Hits the Market for $5.2 Million in New Hampshire
  • FHA Handbook Updated
  • The New Appraisal Report: How One Company Is Rethinking Appraisal Software
  • A Primer on Regulations and the Practice of Residential Property Appraisal
  • Mortgage applications decreased 1.4 percent from one week earlier

AI and Appraisals – the Future

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7.5 Things Appraisers Can Do That Artificial Intelligence Cannot

By Mark Buhler

Excerpts: Artificial intelligence is making waves in nearly every industry — and real estate appraisal is no exception. Computer generated algorithms and valuations promise quick results and lower costs, and some headlines are already asking the question: “Will appraisers be replaced by AI?”

The short answer? Not even close.

What appraisers can do

1. Judge Condition and Quality

An AVM might see a listing that says “4 bedrooms, 3 baths, 2,400 square feet.” What it won’t know is that one of those bedrooms hasn’t been updated since the Nixon administration and still sports avocado-green shag carpet. Appraisers evaluate condition, quality of construction, level of maintenance, and updates — all of which have a direct impact on value. Without physically inspecting a property, AI misses these nuances entirely.

2. Interpret Unique Features

3. Spot Red Flags the Data Misses

4. Smell the House

5. Explain and Defend Adjustments

6. Testify in Court

7. Apply Professional Judgment

7.5 Half Point: Remember to Knock

How to Start Leveraging AI in Your Practice – 7 ways

AI won’t replace appraisers — but appraisers who embrace it will leave others behind. Here are a few easy ways to get started:

1. Use AI‑Driven Comp Tools: Platforms now exist that can quickly identify potential comparables based on similarity scoring. Use them to save time — but always vet the comps yourself.……………

To read more, Click Here

My comments: Worth reading the entire article. What AI can do.

What Appraisers can do, with and without AI.


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