Modern
appraisals
are
going
through
a
mid-life
crisis.
They
aren’t
quite
the
delicate,
subjective
art
form
that
they
used
to
be,

and
technology
is
now
a
must-have
for
appraisers.

The
appraisal
industry
is
taking
on
a
data-driven
mindset
in
2025.
Traditionally,
appraisals
are
mostly
subjective,
which
equates
to
a
“because
I
said
so”
approach
that
leaves
a
little
too
much
room
for
error
and
bias.
As
such,
companies
are
making
moves
to
improve
accuracy
and
efficiency,
marking
a
massive
shift
from
the
old-school
line
of
thinking
when
it
comes
to
appraisals.
They’re
integrating

artificial
intelligence
(AI)
tools,
such
as
computer
vision
and
bias
detection
technology.

In
this
executive
conversation,
HousingWire’s
Content
Studio
sits
down
with


Jeffrey
Rauland,
Chief
Appraiser
and
SVP
of
Data
and
Analytics
at


Consolidated
Analytics.
During
this
discussion,
Rauland
explores
the
company’s
approach
to
modern
appraisals
and
the
market
dynamics.

This
conversation
has
been
edited
for
length
and
clarity.
To
start
the
conversation,
Rauland
dives
into
the
dynamics
of
the
modern
appraisal
market.

Moving
appraisals
from
“art”
to
“science“

HousingWire:
When
you
hear
the
word
“modernization”
in
appraisal,
what
comes
to
mind?

Jeffrey
Rauland:
Modernization
means
different
things,
depending
on
who
you’re
talking
to.
From
my
perspective,
as
someone
running
an
AMC,
I
see
modernization
as
moving
from
an
art
to
a
science.
Historically,
much
appraisal
work
was
based
on
“Because
I
said
so.”
The
GSEs
push
us
toward,
“Because
the
data
says
so.”

Harnessing
the
power
of
computer
vision
for
better
accuracy

HW:
Can
you
give
an
example
of
what
that
shift
from
“art
to
science”
looks
like
in
practice?

Rauland:
One
great
example
is
computer
vision.
The

GSEs
are
already
ingesting
floor
plans,
listing
photos,
and
public
data.
Let’s
say
an
appraiser
reports
there’s
no
fireplace,
but
the
computer
vision
sees
a
chimney
and
a
mantle
in
the
photos.
That
gets
flagged.
So,
it’s
not
just
theoretical
anymore
—
it’s
being
used
today
to
verify
what’s
in
the
report
and
catch
discrepancies.

Balancing
innovation
and
tradition
as
a
modern
AMC

HW:
How
does
modernization
impact
your
work
specifically
as
an
AMC?

Rauland:
It
puts
us
in
an
interesting
position.
On
one
hand,
some
lenders
are
ready
to
move
fast
and
adopt
every
new
tool.
Meanwhile,
others
are
slower
and
more
traditional.
On
the
other
hand,
we’re
trying
to
stay
ahead
of
the
GSEs.

We
act
as
a
bridge
between

lenders,
appraisers,
and
the
agencies,
meaning
we
have
to
balance
a
lot.

UAD
redesign:
Unlocking
your
potential
with
structured
data

HW:
What
excites
you
the
most
about
the
UAD
redesign
or
the
new
tools
coming
out?

Rauland:
From
a
tech
perspective,
it’s
exciting.
We’re
shifting
from
parsing
PDFs
and
unstructured
data
to
working
with
structured
datasets
—
unlocking
possibilities
like
AI
tools,
large
language
models,
and
smarter
validation.

We’re
already
testing
these
internally.
The
goal
isn’t
to
replace

appraisers.
It’s
to

help
them
present
their
work
with
greater
transparency
and
accuracy.

Why
“showing
your
work”
matters
when
using
AI-powered
appraisals

HW:
You
mentioned
“showing
your
work.”
Can
you
expand
on
that?

Rauland:
Think
of
it
like
a
professor
who
gives
you
the
answers
but
still
asks
you
to
show
your
work.
These
tools
suggest
the
most
probable
composition
or
value
range,
but
the
appraisers
still
maintain
the
autonomy
to
say,
“No
—
here’s
why.”

The
key
is
that
appraisers
must
explain
their
reasoning
clearly,
keeping
human
judgment
at
the
forefront.

Cutting
revision
rates
down
to
size
with
streamlined
appraisal
processes

HW:
What’s
one
opportunity
you’re
focused
on
right
now
that
could
improve
things
across
the
board?

Rauland:
Reducing
revision
rates
is
a
priority,
and
revisions
are
expensive
for
everyone.
Everyone
hates
them.
Many
revisions
stem
from
small
issues
that
could’ve
been
caught
earlier.

Everyone
wins
if
we
can
improve
upfront
quality
control
and
address
these
issues
before
the
report
is
sent
out.

HW:
Are
you
using
any
new
tools
or
methods
to
catch
those
issues
early?

Rauland:
We’re
experimenting
with
several
things
—
AI-based
validation
checks,
smarter
photo
reviews,
and
language
models
to
flag
vague
or
inconsistent
commentary.

Again,
it’s
not
about
replacing
people.
It’s
about
catching
80%
of
issues
that
don’t
require
deep
judgment.
That
way,
the
appraiser
can
focus
on
the
stuff
that
needs
their
expertise.

Rauland
also
comments
on
how
Consolidated
Analytics
uses
AI
tools
to
eliminate
biased
language.

Rauland:
We’re
integrating
these
tools
into
our
platforms.
For
example,
our
system
uses
natural
language
processing
to
scan
appraisal
reports
for
potentially
biased
language,
flagging
instances
for
human
review.

If
something
like
“white
appliances”
is
flagged
but
harmless,
we
train
the
bot
to
learn
from
that
context.

Exploring
Consolidated
Analytics’
tech
initiatives

HW:
You’ve
acquired
Real
Info
and
built
proprietary
tools.
How
is
this
positioning
you
as
a
leader
in
the
appraisal
space?

Rauland:
Real
Info
was
an
early
player
in

AVMs
since
the
1990s.
They
provided
sales
and
assessor
data,
and
we’re
now
expanding
into
market
analysis
and
building
AI-powered
AVMs.
One
key
project
is
our
bias
detection
tool.
It
works
like
an
AVM
but
focuses
on
identifying
bias
in
appraisals.