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In this podcast, we cover three topics, all of which are a function of USPAP and certainty. The first topic is “When is an Adjustment Correct?” Second is “What are the Ethics of Using Artificial Intelligence (AI) in a Real Estate Appraisal and Report?” Finally, we’ll consider the real source of appraisal fees – the appraiser. That should get some folks upset! But that’s OK! One of the purposes of these broadcasts is to stimulate critical thought.
So you’ll know, the reason we call this USPAP and Certainty is because USPAP is not certain. That’s why we form value opinions, not value estimates. This lack of certainty is easy to find in extracting adjustments. Using market-depreciate cost will yield on adjustment, while extraction from a comparable sale will yield another. Assuming both have their foundations in verified market data, they’re both correct. But how well do you explain your choice between them? That’s the secret.
And don’t get me started on USPAP and certainty when it comes to AI and real estate appraisals. Too late! I’ve started. AI in real estate appraisal is NOT the future. It is the present and is rapidly becoming the norm. Those appraisers who will not or cannot keep up with the advances in AI will be the appraisers who, within a short time, will be wishing they had. It’s a done deal.
You think it is taboo to talk about appraisal fees? It may be. But after you’ve listened to this podcast, you just may agree with me – or not! Your choice!
USPAP and certainty! What is certain is that USPAP remains the standard for appraisals and appraisal reports. As we know more about USPAP, it is easier to comply with it. Thanks for listening!