AI in valuation is like the weather. Everyone talks about it, few actually prepare for it. Many are secretly hoping this “AI thing” will disappear.
AI fatigue is already setting in for some…I get it. But this blog is for those who’re willing to put in the work – invest time and money for a business outcome.
AI reminds me of my first year as an appraiser out of college. I was teaching the office how to use spreadsheets to do DCFs. I distinctly remember two “old guys” in the back crossing their arms going, “We don’t need to know this stuff.” AI feels like that moment but now I’m the old guy.
Etienne de Bruin, in his book CTO Excellence in 100 Days, introduces the CTO Compass. Four lenses every technology leader should use to navigate complexity: Speed, Stretch, Shield, Sales. At Realwired, we see this compass as a powerful map for fee appraisers and banks embracing digital transformation.
What makes CTO Compass sticks is Etienne himself. He’s quirky, impactful with that South African accent that makes even his sarcasm sound like wisdom. He’s the kind of speaker I’d happily show up for, even if the topic was just the weather. You’d laugh, nod and somehow walk out with a fresh strategy for your business. I’m happy to call him a friend.
Speed. Time is the invisible tax in appraisal departments. Every delay between appraisal order and loan close increases friction and erodes trust. Automated ordering, SLA tracking and streamlined vendor management compress cycle time, giving chief appraisers and lenders back their most valuable resource – speed.
Appraisal firms that lean into AI gives leverage. Running their reports through AI to catch completeness, accuracy and compliance issues before they reach the client. That alone saves revision headaches. The ability to extract and structure data like rent rolls, comps and lease terms means less manual grind. The time savings is obvious for drafting neighborhood descriptions, market overviews, zoning summaries and highest and best use narratives.
Stretch. Stretch means using efficiencies like AI compliance checklists or administrative reviews. Realwired offers AI reviews for our clients, but we focus on keeping the “human in the loop” for accuracy and regulatory scrutiny. This allows bank reviewers to focus their mojo on the higher-level nuance thinking of technical reviews.
Bank revision rates run 35–50%, from typos to major valuation issues. Fee appraisers could cut that drastically by using AI to check their reports against the bank’s engagement letter. Reviewers don’t enjoy sending, “Please revise, the insurable value is missing.”
Shield. Compliance in the appraisal department is a non-negotiable. AI can help chief appraisers document every step of the process with precision with clear audit trails, consistent reviews and defensible data. That means when regulators come knocking, you’re not scrambling, you’re ready. Shield shows your bank, the board and the regulators that your process stands up to any level of scrutiny.
Shield for appraisal firms includes attracting new talent that expects automation. It leverages your in-house data. It strengthens your reputation with clients who see a firm that’s invested in efficiency resulting in more consistent reports delivered much faster.
Sales. I know appraisers flinch at the word. But sales done correctly isn’t pushing products. it’s building trust. AI helps us do that. Faster communication, fewer errors, quicker turnarounds. Suddenly your department isn’t a bottleneck, it’s a partner. That’s sales in banking: credibility and responsiveness at scale.
Most appraisers didn’t get into this profession to “sell.” But sales isn’t about slick pitches. It’s about earning repeat business. When AI helps you deliver better quicker product, you become the appraiser clients want to call back. That’s sales without the plaid blazer.
Most appraisers don’t invest time and money in AI because they’re too busy with the day-to-day whirlwind of writing and reviewing reports. It’s text book “sharpening the ax” story.
At the end of the day, AI isn’t going to magically do everything for you. It’s still a tool. It doesn’t replace appraiser judgment. It buys back your time to drive business value. A huge part of AI that’s not really being talked about is its cost. Free AI isn’t going to cut it.
Etienne might sarcastically say, “The Compass isn’t theory, it’s a tool. But hey if you prefer circling the same block, don’t let me stop you.”
The Compass isn’t theory. It’s direction. Where are you going?