If you’ve been in the real estate industry for a heartbeat or two, you’re probably familiar with the appraisal process. And if you’ve been around just a second or two longer — or taken my Because Price Matters class — then you know about the Lender’s Desk Review that kicks in afterward, where the lender’s review department carefully evaluates whether the appraisal holds up against local market data and comparable sales.

Here’s the moral of that story: even when an appraiser brings in value, the Lender’s Desk Review can sometimes flag issues. And if you’ve ever been caught in that situation, you know how critical it is for the appraiser to be able to justify their valuation.

But now, we may be facing a whole new ballgame.

If Restb.ai has its way, the next level of desk review won’t just involve human checks — it will include a full AI review of the appraisal and comparables.

In fact, it’s already happening.

According to Restb.ai’s recent white paper analyzing the reliability of appraisal condition and quality adjustments, a staggering 33.6% of appraisals were flagged for either having an unwarranted condition or quality adjustment, or including an adjustment not justified by the AI’s analysis of the property’s photos.

Yes, you heard me right: the AI is reviewing the property’s photos — not just the data — to assess condition and determine what adjustments are appropriate.

I’ll admit, there might be some positives here.

I’ve often seen appraisers assign wildly different adjustment amounts for the same feature — one says the garage is worth $7,000, the other says $10,000. Standardized, data-driven adjustments? Sure, that could help bring some consistency.

Let’s be honest: how many of you have shown a home that looked fantastic in the photos… only to walk in and realize those creative camera angles were hiding cracked walls, a sunken floor, or (my personal favorite) the unmistakable smell of cat pee?

I don’t care how smart the AI is — no photo is going to say, “this house smells like a litter box exploded.”

And while appraisers don’t usually get to walk through a sold comp, we often know things that pictures just can’t tell. We can flag those “hidden” issues or encourage the appraiser to call the listing agent for extra details.

Will we still get to explain those nuances, or will the AI just see things in cold, hard black-and-white based on the pictures alone?

For now, we’ll have to wait and see how this plays out — but make no mistake, AI is already starting to double-check appraisers’ work.

As agents, we’ll need to stay sharp, stay involved, and be ready for the new conversations this shift will bring.

Because let’s face it: no matter how smart the tech gets, there are always things only a human with boots on the ground, a sharp eye, and maybe a strong nose can fully explain.

💜 ~Tammy Deitz

White Paper: The Impact of Condition and Quality on Appraisal Accuracy
https://blog.restb.ai/impact-of-condition-and-quality-on-appraisal-accuracy