An appraisal is an opinion of value. It is not the report!
Nearly all recent hullabaloo about modernizing has been led by the big customers: FannieMae and FreddieMac. The “UAD” and “new URAR” is about the report. Not your analysis!
Yes, the report does affect the analysis. But it is not “the act or process of developing an opinion of value.” This is the problem . . .
Today’s technology comprises a huge change from even a few years ago:
- Complete and instant data;
- Immediate appraisal modeling;
- Instant return of proven algorithms;
- Visual connection to human expertise;
- Automation of the appraisal process with AI.
Together, we can call these steps “Intelligence Appraisal”© (IA)© or “Intelligence Valuation”© (IV). These specific terms relate to the combination of human intelligence and artificial intelligence, in the context of economic, valuation, and human behavior theory. This is appraisal intelligence.
So what is appraisal intelligence? If it is not the report, what is it?
Simply put, it is the process which optimizes and exploits the power of AI, together with human competence in appraisal science.
Appraisal science is the data-centric approach to valuation.
So what is the right data? And what is the “centric” part? Data-centric means “all information as necessary, [USPAP]” and “such comparable data as are available [USPAP].” This means it is similar, competitive, and compare-able [The Appraisal of Real Estate].
As it turns out, Data Science (DS) methods are really good at similarity matching. It is not so good at sniffing out things which may be obvious to the experienced local appraiser. DS is excellent at imparting market sense to that expert. This is the IA ‘team’ – expert intelligence + artificial intelligence + DS.
The expert intelligence plus the analysis theory is the Market Analysis Approach. This model combines the best of the three historical approaches, by applying the power of AI.
- This approach focuses on all the evidence available, not just ”three comps.”
- It applies the “five dimensions of similarity” – analytically logical groups.
- It employs one or more of the three predictive (adjustment) models.
So, modernized appraisal means these things — AI, data science processes, and expert appraiser competence in four things:
- Local market nuances and competing features;
- The market analyst (the data science) approach;
- The safe but efficient use of artificial intelligence;
- Risk-based reports by descriptive stats and graphs;
Together, we call this “Evidence Based Valuation” EBV©. EBV lays the foundation for the future of appraisers become asset analysts – real property, risk measurement professionals.
It is more valued, more respected, and more fun! Intelligence.
March 24, 2026 @ 8:33 am
I couldn’t agree more. There is no I in team but there is an A and together with AI my A team can unravel some of the complexities and burdens of the traditional appraisal process. We must also acknowledge that this tech is changing our profession faster than the standards can keep up with. Old ways of managing standards may no longer suffice. This is anything but just another tool and it will impact our work and our daily lives more than any other tech in history and it is happening quickly.
March 31, 2026 @ 6:52 am
I thought I left a comment here last week? Regardless, I am concerned we are losing community. Not only have the poor practices of major institutions, adversely affected the profession for decades, we now risk AI to further that divide. Where we were starting to gain some ground by building communities, based on a common genuine need for sharing of information, for peers to help set the bar for what most standards call the “reasonable professional, or the Reasonable Appraiser”, the curious no longer feel compelled to join in on those discussions, they can simply Ask AI. Don’t get me wrong, I understand those who do not embrace AI risk being left in the dust, but we must fight for transparency and continue to compel each other to avoid working in echo chambers of our own hallucinated assumptions.