Generative AI prompt engineering basics for real estate appraisers

The integration of generative artificial intelligence (Gen AI) into real estate appraisal practices offers opportunities for efficiency gains but introduces significant ethical, technical and regulatory challenges. This chapter examines the application of Gen AI through three focused case studies: evaluating appraisal text for Fair Housing compliance, assisting appraisal review through document analysis, and deriving market-based time adjustments using structured real estate sales data from DuPage County, Illinois. Using real-world examples and the Julius AI platform, the chapter demonstrates how prompt engineering and domain expertise influence the reliability of AI outputs. The findings highlight both the capabilities and limitations of Gen AI tools, emphasising the need for responsible, transparent and skilled application within professional valuation contexts.