ChatGPT for Appraisers

By on May 16, 2025   /   AI, appraisal business, liability, new appraisers, New URAR   /   Leave a comment
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Newz: Appraisers using ChatGPT,
Appraiser Salaries, PAREA Problems

May 16, 2025

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

  • LIA ad: Appraisal Used in Divorce Case – Now What
  • The Power of AI Is Not Absolute Using Chat GTP for Appraisers
  • Retired Maine Railroad Caboose
  • [Updated 2025] What’s the Average Real Estate Appraiser Salary?
  • Indemnification Clauses: What Appraisers Should Know
  • Treasury yields surge, but Fed rate cut odds decline after U.S.-China tariff pause. Mortgage rates may be poised to rise following de-escalation of tariff tensions
  • The PAREA Program: Costly Promises, Empty Support
  • Mortgage applications increased 1.1 percent from one week earlier

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The Power of AI Is Not Absolute
Appraisers Using ChatGPT

Excerpts: With the great power of artificial intelligence comes the responsibility to fact-check.

Artificial intelligence (AI), particularly ChatGPT, has captured the attention of professionals across various industries, including residential appraisal. With ChatGPT now reaching more than 100 million weekly users, according to OpenAI CEO Sam Altman, it’s clear that AI is poised to become a mainstay in our digital toolkit.

ChatGPT is an AI chatbot, powered by a large language model (LLM), which can comb through a vast amount of information and generate text in response to a question or prompt. This ability led me to explore its potential in “seeing” and evaluating property photos, which ultimately inspired me to create the RoboRater tool.

There were some early hiccups — and a learning curve — when I began prompting the AI tool to apply Uniform Appraisal Dataset (UAD) quality and condition ratings to what it “saw” in property photos. And then, in November 2023, Open AI introduced a feature allowing pro users to develop a custom generative pre-trained transformer (GPT), which led to a breakthrough. It enabled me, with no coding background, to tailor a specific version of ChatGPT that excels at assessing kitchen quality and condition ratings from photos, complete with insightful supporting commentary.

ChatGPT as a Writing and Public Relations (PR) Assistant

ChatGPT can also be an invaluable writing assistant and PR specialist, especially in sensitive communication scenarios like Reconsiderations of Value (ROV). It can skillfully rephrase blunt feedback into professional, constructive commentary.

Other topics:

Enhancing Clarity in Technical Reporting

Optimizing Appraisal Business Operations

Navigating the Limitations

To read more, Click Here

My comments: This is the most practical article I have read for appraisers using ChatGPT with good appraiser examples. I am going to start using it soon! Tim Andersen, the USPAP expert, recently wrote an article for Appraisal Today using ChatGTP.

AI does not always work out well.

For example. State Bar of California admits it used AI to develop exam questions.

Nearly two months after hundreds of prospective California lawyers complained that their bar exams were plagued with technical problems and irregularities, the state’s legal licensing body has caused fresh outrage by admitting that some multiple-choice questions were developed with the aid of artificial intelligence.

Read more!! →

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Time Adjustment Changes for Appraisers

By on April 25, 2025   /   appraisal business, Appraisal Subcomitee, ASC, New URAR, time adjustments   /   Leave a comment
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Newz: Time Adjustments, 2025 ASC Appraiser Data Analysis, Fannie Fraud

April 25, 2025

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

  • LIA ad – Weather Impact
  • I Went Down to the Crossroads – Time Adjustments By Tim Andersen, MAI
  • Occidental Treehouse Named California’s Most Wish-Listed Airbnb
  • Analysis of 2025 ASC Appraisal License Data By Chase Pursley
  • Fannie Mae Fraud and Abuse Exposed By Jeremy Bagott, MAI
  • Appraiser Growth and Profitability: Key Things to Focus On By Isaac Peck, Publisher
  • Mortgage applications decreased 12.7 percent from one week earlier

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I Went Down to the Crossroads

Time Adjustments

By Tim Andersen, MAI

Excerpts: Is real estate appraisal, with the issue of more detailed time adjustments, at another cross roads now? In the past, appraisers simply smoothed changes in sales prices over time by measuring prices as of January 1st, then again as of December 31st. If they went up an average of six percent (6%) annually, then the appraiser made a one-half percent adjustment each month.

This protocol inflates prices at six percent (6%) per year, true. But it does not reflect the fact that for the first three quarters of the year prices may have increased at twelve percent (12%) per year, then in the last quarter went flat with a zero percent (0%) price change.

In this example, consider that a comparable sale going under contract at the beginning of the fourth quarter of the year would merit no time adjustment whatsoever. Nevertheless, the appraiser using the smoothing technique will adjust that sale upward at one-half percent per month over a time span when the market is actually flat. That appraiser is merely filling forms, not appraising. How so?

To read more, Click Here

My comments: Very good article on the “new” time adjustment techniques. Interesting music analysis and how it applies to appraising.

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Occidental Treehouse Named California’s Most Wish-Listed Airbnb

Excerpts: Nestled among towering redwoods in western Sonoma County, the Spectacular Spyglass Treehouse in Occidental has earned the title of California’s most wish-listed Airbnb, part of the vacation rental platform’s roundup of top-trending stays in each U.S. state.

Perched high in the forest canopy, the Spyglass Treehouse — designed and built by Artistree Home — offers guests the rare chance to sleep among the redwoods without sacrificing luxury.

The one-bedroom retreat features a king-size bed, high-speed Wi-Fi, floor-to-ceiling windows with panoramic forest views, a cedar hot tub and an indoor infrared sauna.

To read more, Click Here

My comments: A cabin near the redwoods was one of the first places I lived after moving to San Francisco from Oklahoma in 1968. I became fascinated with redwoods. Very close to my cabin was a small redwood grove. I used to go there and lie down to watch the trees. Later I traveled and saw redwoods that were much larger. I am now living about 5 miles from redwood groves to visit

Read more!! →

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Manufactured Home Appraisals

By on April 11, 2025   /   appraisal how to, GSEs, HOME INSURANCE, liability, New URAR   /   Leave a comment
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Newz: Appraisal Cartoon, Manufactured Homes,
Homes Lacking Insurance

NOTICE: Our Email was down from April 3 – April 9.

Our apologies for any bounced emails.

April 11, 2025

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

  • LIA ad Protecting My Appraisal Report
  • Appraising Manufactured Homes – What Fannie Says, Demographics
  • The Vermont Earth Home, the Dome Home, the Vermont Mud Hut…
  • Very funny appraisal cartoon – Magician Explains Time Adjustments!
  • How Many U.S. Homes Lack Insurance?
  • What Are the Appraiser Independence Requirements?
  • Mortgage applications increased 20.0 percent from one week earlier

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Appraising Manufactured Homes – What Fannie Says, Demographics

Excerpts: MH Advantage is an innovative homeownership option that pairs affordable financing with specially designated manufactured housing features typical of site-built homes.

Completing an MH Advantage appraisal requires the knowledge and experience to fully understand the unique construction process of this type of manufactured home. Appraisers must know the manufacturers’ and federal, state, and local requirements for both construction and installation.

The requirements for an MH Advantage appraisal are similar to the requirements for a standard manufactured home. Featured differences include:

Appraisers must include photos of the HUD Data Plate, HUD Certification Labels, and MH Advantage Sticker as well as the driveways, sidewalks, and detached structures located on the site.

To read more, Click Here

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Manufactured Homes: An Alternative Means of Housing Supply – Demographics

Excerpts: Manufactured homes play a measurable role in the U.S. housing market by providing an affordable supply option for millions of households. According to the American Housing Survey (AHS), there are 7.2 million occupied manufactured homes in the U.S., representing 5.4% of total occupied housing and a source of affordable housing, in particular, for rural and lower income households.

Given that most manufactured homes were produced in the 1990s, a significant portion of the existing manufactured home stock — approximately 72.2% — was built before 2000. Consequently, 7.7% of these homes are classified as inadequate compared to 5% of all homes nationwide. About 2% are considered severely inadequate and exhibit “major deficiencies, such as exposed wiring, lack of electricity, missing hot or cold running water, or the absence of heating or cooling systems”. However, with proper maintenance, manufactured homes can be as durable as site-built homes.

The East South Central division (Alabama, Kentucky, Mississippi and Tennessee) have the highest concentration of manufactured homes, representing 9.3% of total occupied housing. The Mountain region follows with 8.5%, while the South Atlantic region holds 7.7%.

To read more and see excellent illustrations, Click Here

My comments: If you live in an area with manufactured homes, these two articles can help.

In my urban area I have appraised a few homes built in cities where there were very few manufactured homes.  In some areas there are many more. My brother lived in a semi-rural area, north of San Francisco. A while ago there was a major fire destroying many homes. Owners who wanted a quick rebuild, chose manufactured homes. They were allowed on many of the parcels for many years.

Read more!! →

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Climate Change and Home Values

By on February 7, 2025   /   bias, climate change, climate risk, Economic analysis, New URAR   /   Leave a comment
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Newz: Waivers Increasing, The New URAR: Markets vs. Neighborhoods , Climate Change and Home Values

February 7, 2025

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

  • LIA AD: Should I consider this an actual claim?

  • How Climate Change Could Upend the American Dream – Declining Home Values

  • A Sporty Paradise in Your Own Backyard: 5 Homes With Awe-Inspiring Athletic Amenities – From Hockey Rinks to Boxing Rings

  • Trump’s War on DEI: Immediate Effects for Appraisers

  • The Full Measure: January 2025 Housing Market Insights for Appraisers

  • Waivers Increasing and Trends Over Time

  • There Goes the Neighborhood…The New URAR: Markets vs. Neighborhoods

  • Mortgage applications increased 2.2 percent from one week earlier.

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How Climate Change Could Upend the American Dream

Declining Home Values

Excerpts: Americans have long accumulated wealth by owning their homes, but a new study predicts that spiking insurance rates and climate disasters now herald an era of widespread losses.

One little-discussed result is that soaring home prices in the United States may have peaked in the places most at risk, leaving the nation on the precipice of a generational decline. That’s the finding of a new analysis by the First Street, a research firm that studies climate threats to housing and provides some of the best climate adaptation data available, both freely and commercially. The analysis predicts an extraordinary reversal in housing fortunes for Americans — nearly $1.5 trillion in asset losses over the next 30 years.

Climate change is upending the basic assumption that Americans can continue to build wealth and financial security by owning their own home. In a sense, it is upending the American dream.

To read more, Click Here

My comments: I hear about, and see, more listings that are including climate risk levels. I have not seen discussions on the future of home values in risky areas. I live 10 miles from a very risky area – Oakland CA hills. I am too far away to be at risk. My insurance company, State Farm, is requesting a 22% increase in homeowner’s insurance. Insurers have been not renewing individual homes for various reasons. Will I have to pay the same rates as the Oakland hills, which is very high risk and had a major fire in 2001?

I quit doing appraisals in the Oakland hills about 15 years ago due to high personal risk if a fire starts while I am there. Narrow, winding, one lane roads. Very difficult to escape from fire. Most of my city has risks from sea level rise and some parts have flooding risks, but my home is not included fortunately.

How will appraisers make adjustments for risky homes?

Read more!! →

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New URAR For Appraisals

By on November 8, 2024   /   appraisal, appraisal modernization, Economic analysis, GSEs, lender appraisals, liability, New URAR, time adjustments   /   Leave a comment
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Newz: New URAR, GSEs Update Appraisal Market Areas Requirements, Lender Redlining

November 8, 2024

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

  • Claudia Says: Navigating Value Revisions in Appraisals

  • The New URAR: Embracing New Beginnings

  • $19.8 Million Cape Cod Estate Next to Kennedy Family’s Famed Hyannis Port Compound Hits the Market

  • CFPB and Justice Department Take Action Against Fairway for Redlining Black Neighborhoods in Birmingham, Alabama

  • October 2024 Real Estate Market Update: A Balancing Act of Hope and Hurdles

  • What can we expect for the future of the appraisal and the country?

  • GSEs Update Appraisal Market Area Requirements

  • Mortgage applications decreased 10.8 percent from one week earlier

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The New URAR: Embracing New Beginnings

By Jo Traut

Excerpts:

What’s New with the New URAR?

Think of the new URAR like upgrading from a basic flip phone to a modern smartphone. The old flip phone did its job—making calls and sending texts—but the new smartphone offers so much more. It’s customizable, adaptable to various apps and functions, and streamlines your daily tasks.

Similarly, the new URAR goes beyond a static, one-size-fits-all approach. It’s dynamic and data-driven, tailored to different property types and appraisal assignments, ultimately allowing us as appraisers to provide clearer and more comprehensive reports .

Why the Change?

The existing URAR has been dependable, much like an old-school flip phone. But as technology advances and standards evolve, the mortgage industry requires a more versatile tool. This redesign addresses current inefficiencies, meeting the rising demand for improved reports, as well as enhancing the experience for both appraisers and report readers.

To read more, Click Here

My comments: Read this blog post! Definitely the best practical appraisal advice I have read on new URAR. Includes links to relevant technical details.

No more 30-40 page appraisal SFR reports that is not what GSEs (and most appraisers) wanted. No more outdate “forms” reports that do not change fast enough to accommodate GSE (and USPAP) changes.

Both URAR and UAD acronyms are used in articles and references I have read. I like that the GSEs kept the same name for the reports (formerly “forms”)

URAR – Uniform Residential Appraisal Report

UAD – Uniform Appraisal Dataset

I will be writing more about the new URAR upcoming changes in future issues of this weekly newsletter and my monthly newsletter.

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$19.8 Million Cape Cod Estate Next to Kennedy Family’s Famed Hyannis Port Compound Hits the Market

Excerpts: 7 bedrooms, 7.5 baths, 9,629 sq.ft. 3 Acre lot, Built in 1914

Adjacent to the famed Kennedy Compound in the exclusive Hyannis Port enclave, the eight-bedroom mansion, known as Port View, has just become available “for the first time in a quarter century,” according to the listing.

The seaside, 9,629-square-foot residence sits right next to the home where President John F. Kennedy and wife Jacqueline Kennedy Onassis famously spent their summers sailing the waters of Nantucket Sound.

Some of the most impressive features found throughout the 26-room estate’s open floor plan include high ceilings, ornate architectural details, an imperial staircase, and six fireplaces.

“The whole interior views to the water,” she said. “It’s like being on a ship with front row ocean views. You are just drawn to it.”

Built in 1914, the Cape Cod mansion has been thoughtfully modernized over the years to retain its historic integrity.

Period details include exposed-beam ceilings and preserved mahogany inlay floors. French doors from the main living and dining areas give way to an enormous patio with waterfront views.

To read more, Click Here

To see the listing, with 28 photos, Click Here

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CFPB and Justice Department Take Action Against Fairway for Redlining Black Neighborhoods in Birmingham, Alabama

Top mortgage lender to pay a $1.9 million penalty and provide $7 million in loan subsidies

Oct. 15, 2024

Excerpts: Today, the Consumer Financial Protection Bureau (CFPB) and the Justice Department (DOJ) took action to end Fairway Independent Mortgage Corporation’s illegal mortgage lending discrimination against majority-Black neighborhoods in the greater Birmingham, Alabama area. The CFPB and DOJ allege that Fairway illegally redlined Black neighborhoods, including through its marketing and sales actions.

Fairway’s actions discouraged people from applying for mortgage loans in the Birmingham metropolitan area’s Black neighborhoods. If entered by the court, the settlement announced today would require Fairway to pay a $1.9 million civil penalty to the CFPB’s victims relief fund. Fairway would also be required to provide $7 million for a loan subsidy program to offer affordable home purchase, refinance, and home improvement loans in majority-Black neighborhoods.

To read more, Click Here

My comments: How much money did Fairway make vs. what an appraiser makes for an appraisal. More lenders in the news vs. “biased” appraisers!

Read more!! →

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