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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Bias in Appraisals. What Does It Mean?

By on October 17, 2025   /   appraisal, appraisal business, real estate market   /   Leave a comment
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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.

Read more!! →

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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.

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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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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.

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
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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

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Drive-By Appraisals – Who, What, Why

By on April 18, 2025   /   appraisal how to, Appraisal Standards Board, hybrid appraisals, liability, real estate market   /   Leave a comment
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Newz: Drivebys, Foreclosures, Hybrids?, ASB Q and As

April 18, 2025

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

  • LIA ad: Appraisal Used in Divorce Case—Now What?
  • What is a Drive-By Appraisal?
  • Contemporary Architect’s Downtown Santa Barbara Home Could Set a Condo Price Record
  • Top 10 U.S. Housing Markets with the Most Foreclosure Starts in March 2025
  • Hybrid Appraisals – Flawed Data or Flawed Agenda?
  • New ASB Q&As
  • Mortgage applications decreased 8.5 percent from one week earlier

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What is a Drive-By Appraisal?

Excerpts: This method bypasses traditional in-person appraisal methods and has grown in relevance for situations like refinancing or low-risk loans where a full interior inspection may not be necessary.

In addition to observing and evaluating the property’s exterior condition, appraisers will also assess the surrounding neighborhood, use MLS listings for home interior information, and evaluate comparable sales data to estimate property value.

Also known as “exterior-only appraisals” or “2055 appraisals,” this approach is often chosen when a full appraisal isn’t required, such as for low-risk lending scenarios or when lenders have sufficient market data to support a valuation without an interior inspection.

They are also used in situations like foreclosure when interior inspections are not possible.

Topics

  • How Does a Drive-By Appraisal Work?
  • Steps to Conducting Drive-By Appraisals
  • Situations When a Drive-By Appraisal is Used
  • Limitations of Drive-By Appraisals
  • Drive-By Appraisals and Industry Standards

To read more, Click Here

My comments: Definitely the most comprehensive and understandable article on drive-bys I have read. I did many drive-bys in the 80s and 90s for lenders. I finally quit doing them on 2-4 unit properties with little info available. Also, when appraising large Victorians I did not know what had changed since 1910. Permit histories in my city are very limited prior to 1950.

I did a lot of foreclosure drive-bys when prices were dropping. I did full appraisals with interior inspections after they were foreclosed.

My most difficult drive-by was a house that was completely “trashed” after the death of the owner by a young relative drug user. It had been sold after renovation and I had no access. I interviewed relatives, neighbors, etc. to try to find out what it was like on the date of death. I always ask the estate trustee to get me access to the house before any changes are made if possible.

BE CAREFUL. DO NOT UNDERBID ON DRIVEBYS.

TOO MUCH UNCERTAINTY ABOUT THE INTERIOR CONDITIONS.

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Appraisers and Firearms

By on April 4, 2025   /   appraisal business, Appraisal Institute, Economic analysis, GSEs, humor, New URAR   /   Leave a comment
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Newz: Appraisers and Firearms,Future of Home Finance and GSEs, Q1 2025 Fannie Mae Appraiser Update – New URAR

April 4, 2025

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

  • LIA ad: A Family Feud and Intended Use
  • Experiences with Firearms as an Appraiser: When Tenants Behave Unexpectedly in “Their Area”
  • Billionaire Opendoor Founder’s Three-Winged ‘Propeller Home’ Hits the Market for $40 Million
  • Appraisal Institute Scandal – Widespread Fraud Uncovered
  • Housing Market Shows Early Signs of Spring By Kevin Hecht, SRA
  • Reshaping Home Finance: The Future of Fannie Mae, Freddie Mac, and U.S. Mortgage Policy By Rob Chrisman
  • Originator jobs; Stated income loans; DOGE shifts its attention; Fannie lawsuit; clear path for rates By Rob Chrisman
  • Q1 2025 Fannie Mae Appraiser Update! – New UAD Sample Reports and Ratings, Time Adjustments
  • Mortgage applications decreased 1.6 percent from one week earlier

 

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Experiences with Firearms as an Appraiser: When Tenants Behave Unexpectedly in “Their Area”

Excerpts: Appraisers often find themselves in a wide variety of settings and situations. I mean, we are entering people’s homes, somewhere that most people see as their comfort zones and a place they are not open to having a stranger poke around in. We as professionals understand this and usually try to make it as quick and painless as possible. There are those moments where it turns into a “memorable experience” and homeowners or tenants feel like they must make it known we are not welcome.

I personally am batting .1000 this year on multi-family properties, where tenants have felt it was necessary for me to get the message, by brandishing a firearm. I will share the following two situations, how I personally managed it, explain why I do not personally carry a concealed firearm, and ask you readers to tell me if this is common or for similar memorable experiences.

For more information and to read the appraiser comments, Click Here

My comments: My first appraisal-related job was with the Monterey (California) County Assessor’s office. It was transitioning to computerized valuation. I was a temporary “appraiser assistant” hired to go to properties to see if the county appraisal records needed updating.

In those days (mid-1970s), properties were reappraised regularly to increase the assessments and property taxes were increased.

I knocked on the door and was met with a man carrying a shotgun. He said: Go away assessor! I don’t remember the city, but it was not in a rural area. I left and told my supervisor to find someone else to do the inspection.

I have never owned a firearm and would never carry one. No one I knew owned a firearm except for my husband, who had firearm training when he was teaching horticulture at a state prison. I would not allow a firearm in our house but still keep a baseball bat by my front door “just in case”.

But, recreational firing at a target was on my “bucket list”. An appraiser friend took me to a local firing range. I tried handguns, rifles and shotguns. Some worked like machine guns with many bullets fired at one time. I really liked it the best. Next time I go to Las Vegas I will try out real machine guns. Trying to hit a target did not appeal to me. Ya never know until you try!

Of course, I have had many encounters with dogs. One was when I was appraising the house of an appraiser I knew. I was met with small dogs biting my ankles. When the owner put the dogs away I continued with the appraisal. Another time, in a rural area, 3 large Dobermans broke down the door of a mobile home and ran toward me. I managed to get in my car. I told the lender to get another appraiser.

When markets crashed I did a lot of foreclosure appraisals. I made a lot of noise opening the door and loudly saying I was an appraiser for the lender and needed to come inside. I never had a problem. But some appraisers requested that a police officer accompany them when the home looked “sketchy” to them from the outside.

Read more!! →

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Appraisal Sq. Ft. Appraisal vs. Assessor/Public Records

By on March 14, 2025   /   adjustments, ADUs, bias, Economic analysis, real estate market, Trump Changes   /   Leave a comment
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Newz: Sq. Ft. Appraisal vs. Assessor, The “R” Word, HUD Appraiser Complaints

March 14, 2025

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

    1. LIA AD: Navigating value revisions in appraisals
    2. Why Is the Square Footage in Public Records Different from the Appraisal?
    3. 5 Properties With ADUs or In-Law Suites
    4. Open Letter to Government Efficiency Commission on HUD’s Appraiser Complaints
    5. The “R” word in real estate – Recession
    6. Going In-Depth on a Delicate Issue: The Invisible Fence of Racial Discrimination
    7. Mortgage applications increased 11.2 percent from one week earlier

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Why Is the Square Footage in Public Records Different from the Appraisal?

By Tom Horn

Excerpts:

Why Accuracy Matters

Square footage is one of the most critical factors in determining a home’s value, yet it is often misunderstood. Many homeowners and real estate agents assume that the square footage listed in public records is accurate, but that’s not always the case. When an appraiser measures a home, their calculation often differs from what’s in tax records. These discrepancies can lead to confusion, mispricing, and even appraisal challenges.

Why Square Footage Discrepancies Occur

Public Records vs. Appraisal Measurements

The square footage listed in public records typically comes from the county tax assessor’s office. Assessors determine square footage based on:

Builder-reported figures:…

Estimates or outdated records:…

Conversions and Additions

Another common reason for discrepancies is home modifications. If a homeowner adds square footage without the proper permits, tax records may not reflect the change. Examples include:

Unpermitted additions:…

Incorrect classifications:…

To read more, Click Here

My comments: Worth reading. Written for non-appraisers but the best explanations I have ever read about this topic. I worked for an assessor’s office for my first 4 years of appraising, starting in 1975. I was given a geographic area and appraised every residential in it. Fantastic experience. I learned a lot. I was very lucky. Very different than lender appraising, where you only appraise properties that are suitable for mortgage loans.

The March 2025 issue of Appraisal Today has a very comprehensive article for appraisers: Can you use the assessor’s assessment values for site valuation, by Tim Andersen, MAI.

Read more!! →

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AI and Appraisers

By on October 11, 2024   /   appraisal business, george dell, HOME INSURANCE, liability, real estate market, va   /   Leave a comment
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Newz: AI Limits, VA News, New UAD,
Hurricane Risks

October, 11 2024

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

  • Intended Use and User (LIA Ad)
  • The Limits of AI: When the intelligence is artificial, common sense is a superpower
  • Vila Siena In Bel-Air CA Is The Most Insane Mega-Mansion EVER at $177,000,000
  • The New UAD: Opportunity, Confusion or Threat?
  • What’s New at the VA? A Q&A With Its Chief Appraiser
  • Effects of Hurricane Helene
  • Is Anywhere Safe From Hurricanes? The 10 States With the Lowest Risk of Damage
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  • Appraisal Business Tips 

 

The Limits of AI: When the intelligence is artificial, common sense is a superpower

By John Russell

Excerpts: At some point, all of us will integrate AI tools into our business practices. Whether it automates mundane and repetitive tasks, generates narrative text, or assists with analyses, the power of AI to save time is real.

The good news for valuation professionals is they have lots of experience spotting data points that don’t jibe with what they know. Another way to say this is that they have common sense. It’s a basic requirement for doing the work. Of course this 3-story overbuilt McMansion is probably not a comparable for a Cape Cod two miles away. That sale was under atypical conditions and, at minimum, needs adjustments to even be considered. You get the idea.

Do I trust what the AI is telling me?

Accepting AI outputs without any skepticism is a recipe for disaster. Approach AI like a detective interviewing witnesses: trust, but verify. Basic internet searches can quickly fact-check results — or raise enough red flags that you reject what is being offered. No state board will accept the argument, “But ChatGPT said,” and neither should you….

Should I be using AI for this task?

Just because you can doesn’t mean you should — commit this phrase to memory. You will have to own everything in your report, and if too much of the product is driven by AI tools, you may be asked: “Well, what exactly did you do here?”…

Common sense is a superpower that can protect you from dire consequences as you experiment with AI. It’s tempting to be spellbound by new AI tools that seem miraculous — and to let down your guard of common sense. Instead, I recommend a heightened sense of caution: The tools are only as good as the people who craft them and the inputs provided by the users. AI hallucinations are still unpredictable, inevitable failure points, which means any “facts” and analyses it supplies should always be verified — it’s just common sense

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My comments: Good, practical analysis of AI for appraisers.

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