The Power of AI Is Not Absolute

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

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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.

From Curiosity to Creation: The Birth of RoboRater

When I saw those early demos of ChatGPT crafting original, personalized poems and lyrics, I was impressed. But the practical side of my brain quickly wondered how to leverage this tool to facilitate the appraisal process. 

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. 

This custom tool, RoboRater, now available in the GPT store, marks a significant step toward my goal, which is to extend its utility to holistic property ratings sometime in the future.

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. Consider this extreme example, in which I request ChatGPT to rewrite some harsh and poorly written feedback:

Me: Rewrite the following to be courteous and professional: “This revision is one of the stupidest requests I’ve received in my 20 years of appraising. The subject is 400 square feet smaller than the provided comparable. Only an idiot would think this is comparable. There are also more recent sales and more similar sales in closer proximity that should be used before you consider this stupid comparable. The value stands!”

ChatGPT Rewrite: ”Thank you for providing this comparable sale for consideration. Upon review, I noticed that the subject property is 400 square feet smaller than the comparable provided, which raises concerns regarding its suitability for comparison. It is important to consider the most accurate and relevant comparables to ensure the integrity of the appraisal. In this case, there are more recent sales of properties that are more closely aligned in size and location to the subject property. These should be prioritized in the analysis to maintain the accuracy and reliability of the valuation. I appreciate your understanding and cooperation as we strive to uphold the highest standards in our appraisal process. The value as previously determined remains supported by these considerations.”

This transformation underscores ChatGPT’s capability as a diplomatic communicator, helping us maintain professional standards even in challenging situations.

Enhancing Clarity in Technical Reporting

With savvy prompting, ChatGPT can transform complex subjects, often heavy with industry-specific terminology, into clear and concise language. Diverse audiences who may not have expertise in appraisal — such as underwriters, realtors, borrowers, and sellers — will be grateful to read a report that communicates your analysis and findings straightforwardly. 

By creating a report that even a non-expert reader can understand, you’ll reduce the likelihood of requests for further explanations through revisions. Since revisions can be time-consuming, enhancing clarity saves time and has financial benefits.

Optimizing Appraisal Business Operations

AI chatbots like ChatGPT offer much more than report-writing assistance. They can answer your questions by searching the internet to gather and synthesize information and delivering succinct and relevant responses, complete with source citations. 

Beyond retrieving data, AI can be a great collaborative brainstorming partner, helping you generate ideas and create content. It excels at summarizing long articles and industry-related papers, helping you stay updated on industry trends and best practices without having to read extensively. Additionally, AI can help compose emails — suggesting phrasing, correcting grammar, and generating text that aligns with the intended message. 

While not explicitly tailored for appraisal practices, these AI-driven tools have immense potential to streamline operations and foster efficiency within an appraisal business.

Navigating the Limitations

While the promise of AI is vast, there are pitfalls. It’s critical to approach ChatGPT’s outputs with healthy skepticism. To ensure accuracy and professionalism in all reports, think of AI-generated answers as phase one of your research — always fact-check its outputs and sources. 

Like any tool, ChatGPT requires oversight to mitigate risks associated with misinterpretation or “hallucinations” — outputs that may be unfounded or irrelevant. The responsibility to verify and refine these outputs lies with us, reinforcing the human expertise at the core of our profession. Treat AI output just like you would information or work provided by an assistant or trainee. 

The essence of your work remains the same: it’s the execution that evolves.

USPAP STANDARDS RULE 1-1(a) requirements have never been more pertinent. Appraisers must continuously adapt to newly recognized methods and techniques in an ever-evolving field. The comment section of this rule instructs appraisers to improve their skills constantly. Embracing and incorporating appropriate technology into our practices is essential for sustaining expertise in the rapidly changing digital landscape.

As we stand on the brink of a new technological era, the message is clear: AI technology is here to stay. Ignoring its potential carries the risk of obsolescence. Instead, I encourage you to explore ChatGPT, refine your prompt engineering skills, and remain open to AI’s transformative possibilities. In embracing AI, we’re not replacing the human element but augmenting it, enhancing our workflows, and ensuring our profession remains at the forefront of innovation and efficiency.