Comments on: Bias in Automated Valuation Models https://appraisersblogs.com/bias-in-automated-valuation-models Appraisal News and Tips for Real Estate Appraisers Mon, 05 Jun 2023 12:45:02 +0000 hourly 1 https://wordpress.org/?v=7.0 By: Timothy C. Andersen https://appraisersblogs.com/bias-in-automated-valuation-models/#comment-38367 Mon, 05 Jun 2023 12:45:02 +0000 https://appraisersblogs.com/?p=26380#comment-38367 Think about this: Under “the rules”, an appraisal is biased if it concludes a value less than the contract price. That, of course, raises (at least) two questions: (1) why is the AVM always “right” and the appraiser, thus, always wrong? And (2) how will the self-appointed arbiters of bias conclude an appraiser is biased if the appraisal is for a refinance? The Chinese have a curse: “May you live in exciting times!”. Clearly, appraisers are living in exciting times!

]]> By: ej https://appraisersblogs.com/bias-in-automated-valuation-models/#comment-33534 Wed, 02 Mar 2022 19:59:04 +0000 https://appraisersblogs.com/?p=26380#comment-33534 In reply to Chuck Minzenberger on Facebook.

Both the GSEs AVM are racist. They are programmed to undervalue minority communities.

]]> By: Realist https://appraisersblogs.com/bias-in-automated-valuation-models/#comment-33529 Wed, 02 Mar 2022 03:46:35 +0000 https://appraisersblogs.com/?p=26380#comment-33529 Regression Analysis (RA) is so unreliable it has no usefulness. All of the RA’s I have seen don’t include/consider several factors of differences, particularly condition and quality differences/adjustments which can be large. The skewed results are meaningless. Ask a real statistician and they will quickly point out that the data sets for appraisals are considerably to small and typically don’t recognize all pertinent variables to produce reliable results. Smart attorneys and appraisers can easily dismiss this method of deriving adjustments. Unfortunately, the AVM side can spew their nonsense because it seems impressive and intimidating until you break the components down.

AVM’s are unreliable. Their only consistency is being all over the map value wise except for where they should be. Nobody in their right mind should rely on these – ever.

]]> By: Wildman Joe https://appraisersblogs.com/bias-in-automated-valuation-models/#comment-33506 Tue, 01 Mar 2022 18:18:17 +0000 https://appraisersblogs.com/?p=26380#comment-33506 The data is all screwed up. Fannie Mae expects regression analysis for adjustments regardless of the bad data. Statistics need good data. Realtors measure homes inside out. Appraisers measure how’s based on exterior measurements. Appraisers have to use condition ratings based on six groups. Realtors rate house based on who owns them the bank or person. Banks were giving homes away that needed cosmetic work. Meanwhile a similar home was move in condition. Now appraisers have to take this data and unravel it. Changes made after 2008 have done nothing. Realtors, appraisers and the assessment office are most often not on the same page. I can write a book about how inconsistent it is. We need to all work with the same rules and held accountable.

]]> By: PJTMC https://appraisersblogs.com/bias-in-automated-valuation-models/#comment-33501 Tue, 01 Mar 2022 00:24:10 +0000 https://appraisersblogs.com/?p=26380#comment-33501 In reply to Greg York on Facebook.

The Dude!!!! Now there’s a guy who doesn’t have a biased bone in his body.

]]> By: john cena https://appraisersblogs.com/bias-in-automated-valuation-models/#comment-33492 Mon, 28 Feb 2022 19:27:32 +0000 https://appraisersblogs.com/?p=26380#comment-33492 So lets see here. Appraisers are biased for using the data we use everyday. you know the same data these algorithms and AVMS use every day with the exception that an appraiser visiting the site has much more info in hand than an AVM.. The same data that appraisers must decipher due to poor agents and tax data collectors. Of course the data will be biased and stupid. So yes lets stop using actual people to see, smell and hear whats going on at the property and replace that with a computer. What could go wrong? If the powers to be want change… start looking at the data that agents and more input and stop looking at appraisers as the bad people. Bad data input equals bad data outputs. Enough with this already. The data has been baked for years and years and that’s an issue of local governments, cities and the country.

]]> By: Cheryl Ferguson on Facebook https://appraisersblogs.com/bias-in-automated-valuation-models/#comment-33486 Mon, 28 Feb 2022 17:08:44 +0000 https://appraisersblogs.com/?p=26380#comment-33486 Well, the AVMs likely apply the same “bias” to sales in the neighborhood of the subject property. Go figure! Why would they do that?

]]> By: Greg York on Facebook https://appraisersblogs.com/bias-in-automated-valuation-models/#comment-33485 Mon, 28 Feb 2022 17:06:26 +0000 https://appraisersblogs.com/?p=26380#comment-33485  

you dont say

]]> By: Chuck Minzenberger on Facebook https://appraisersblogs.com/bias-in-automated-valuation-models/#comment-33484 Mon, 28 Feb 2022 17:03:45 +0000 https://appraisersblogs.com/?p=26380#comment-33484 In reply to Ernie Ramos on Facebook.

Ernie Ramos blaming appraisers for racial bias is like blaming a thermometer for the temperature! LOL

]]> By: Ernie Ramos on Facebook https://appraisersblogs.com/bias-in-automated-valuation-models/#comment-33483 Mon, 28 Feb 2022 17:02:52 +0000 https://appraisersblogs.com/?p=26380#comment-33483 In reply to Chuck Minzenberger on Facebook.

Chuck Minzenberger damn biased computers!!!

]]> By: Chuck Minzenberger on Facebook https://appraisersblogs.com/bias-in-automated-valuation-models/#comment-33482 Mon, 28 Feb 2022 17:01:36 +0000 https://appraisersblogs.com/?p=26380#comment-33482 As long as people are involved there will be some bias, who programs the AVMs? It would be nice if someone in the group knew something about appraisal

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